WEEKLY MARKET UPDATE FEBRUARY 16th, 2025
Once upon a time, we all hoped for a love story between the economy and lower interest rates. But January’s inflation report had other plans. Rising costs—rent, oil, and food—became the third wheel, pushing inflation to 3.0% YoY and keeping the Fed from making its long-awaited move.
?? Mortgage Rates: A Love Lost We dreamed of rates dipping into the 6s, but instead, they ran back above 7.1%. And just like an ex who won’t text back, the Fed won’t be cutting rates anytime soon—at least not before October.
?? Rent’s Changing Story While rents barely budged nationwide, some cities saw major breakups—Austin (-16%) and Tampa (-8%) are finally cooling off.
?? The “Magic” Mortgage Rate History tells us that when mortgage rates fall below 6.5%, buyers and sellers rekindle their romance with the market. Until then, many will wait for their perfect match.
?? Buyer Sentiment: Hope on the Horizon? Fannie Mae’s Home Purchase Sentiment Index ticked up slightly to 73.4, but most buyers still think it’s a bad time to commit. Still, whispers of rising home prices and rents keep the market from losing all hope.
?? What’s Next? Now, we turn to new Treasury Secretary Scott Bessent—can he play Cupid and bring long-term rates down? Only time will tell.