HOMES SALES, MORTGAGE RATES, INFLATION, + THE FED

Rates are UP?as we end the week!? Check em' out and then read our 30 second commentary below.?Rates are averages / examples for network use only: Pricing as of 10/25/2024 at 11:41 AM.

HOMES SALES, MORTGAGE RATES, INFLATION, + THE FED

This Week’s Housing Market Update

Despite the challenging data out this week (highlighted below) - our team has still been able to craft fantastic options for home buyers, and save clients substantially with certain refinance scenarios.? The data is the data, but we won't let that discourage our actions or mission to serve clients well. Our team is optimistic and ready to help throughout the weekend!

1. Mortgage Rates Continue to Climb Mortgage rates rose again this week, fueled by higher 10-year Treasury yields and inflation data. The 10-year Treasury note reached 4.21% mid-morning Friday, up from 3.74% on October 1. Rising rates are causing some homebuyers to pause, especially with the uncertainty around next month’s election.

2. Inflation Remains a Concern Although the Federal Reserve is approaching its 2% inflation target, the broader economic burden remains. San Francisco Fed President Mary Daly highlighted the ongoing challenges, urging continued vigilance as high prices still impact consumers and businesses across the country.

3. Home Sales Decline Existing home sales fell 1% in September compared to August, with an annualized rate of 3.84 million units – the lowest since October 2010. Sales dropped in three out of four U.S. regions, with the West as the only area seeing gains. Inventory rose 1.5% month-to-month, providing a 4.3-month supply at the current sales pace. This marks a 23% increase from September 2023.

4. Inventory and Prices Edge Higher Higher inventory may give buyers more options, but prices remain elevated. The median home price in September rose to $404,500, marking a 3% increase from last year and extending the streak of annual price gains to 15 months. Despite added inventory, distressed properties are rare, making up just 2% of all September transactions.

5. Mortgage Applications Drop Total mortgage applications dropped by 6.7% last week, the lowest since July. Applications for home purchases declined by 5% as buyers face higher home prices and some wait to assess the impact of the upcoming presidential election.

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