Mortgage Market Update - "Growing Perspective" (recap 2/21-25/22)

The kids often steal my phone and take pictures.?Every time I see the kid's photography, I think two things: 1) “How the heck did those grubby fingered little hackers get into my phone!?!”?2) “Man, is that what I look like from their perspective??That is not a faltering angle!!”

Perspective is always hard in the moment.?Especially if you feel pressured or rushed, as we often do when making decisions on a home.??With offer deadlines looming, volatile rates, and real-life pressures, it can often be hard to find a chi-like perspective in real estate.?If you know what I am talking about, you will enjoy this week’s newsletter.?If not, you can still enjoy a chuckle with this week’s personal note and the key headlines driving the real estate market in this week’s mortgage market update.?

• Consumer confidence fell to a 5-month low in February, with fewer consumers planning to spend?on homes, automobiles, and vacations.?This is the Fed's goal, incentivize savings to curb?inflation.
• Concerns over even greater inflation are mounting this week, as oil prices surged to more than $100 a barrel for the first time since 2014.
• The labor market continues to show strength. Last week's unemployment claims were lower than expected, and continuing claims hit a 52-year low.

• Homebuilder confidence fell for the 2nd straight month, as?builders face delays for cabinets, garage doors and appliances needed to finish homes.
• January existing home sales jumped 6.7% over December, even though the supply of homes for sale fell to a record low, down 16.5% from a year ago.
• The Federal Housing Finance Agency reported U.S.?house prices rose 17.5% overall from the 4th quarter of 2020 to the 4th quarter of 2021.

We went on a family vacation this week.?Our first “real” one in a long time.?We went back to a family favorite hotel, in NH.?Ryan has been begging to go back for about 3 years.??At the end of the trip, while the kids were enjoying the buffet (which included every single one of their favorite foods for each meal), we asked if it lived up to expectations:

Me:?"It's been a few years since we came here. Is it still just as fun as you remember?"

Ryan:?"Yeah.?Just as good. But, the only difference is the last time we came, the bacon was up way up high."

Me:?"Ha, no you were just smaller. Last time we came you were only almost 3 and now you're almost 6. The table with the bacon was the same size."

It is no secret that rates are on the move and have been (aggressively volatile) since early January.??But, try not to let headlines drive you into panic.?The other day, I was on the phone with a client.??She was upset with the quoted 3.625% (on her new condo) seemed way to high—especially since she had a friend who got 2.5% last year.?After trying to explain why that wasn’t a “fair” comparison, I pulled her original pre-approval breakdown, from when we first spoke in the fall of 2019.?In September 2019, I pre-approved her at 4.875%...so maybe 3.625% or even 4% isn’t so bad after all…

For some the bacon may seem out of reach.?However, growing perspective can help shift the sightlines and add focus.?At any height, the bacon always tasks like delicious bacon.??

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