Mortgage Market Review, as of 07.17.18
Today Fed Chairman Jerome Powell gave his semi-annual testimony to the Senate Banking Committee. Reading from pre-prepared notes he believes the best path is for further Fed Rate Hikes. That could be 1 in September and maybe 1 more in December? He spoke of low unemployment and the economy growing at a solid pace. Let’s agree that the Fed moving their rates up caused our mortgage rates to go up – but it was not a straight line, it was gradual and are still historically low. I don’t believe rates going up is the reason for the market slow down we are having, well, not the main reason.
So Where are the Buyers?
Today I took a look at Realtor.com and checked-out listings in my area. Is it me or does there seem to be a large amount of pre-existing homes near the $600k mark? Even decent listings at $450/500k mark appear to be sitting. What’s driving this? Are there just less buyers? Are builders attracting all the buyers with their “no updates required” homes? Have Sellers priced their existing homes too high for the market? Or, were the last few years of activity really driven by the corporate relocations into DFW–essentially a blip?
I’d love to know because home ownership is still affordable with rates sitting under 5% which is in the historically low range, big time. Let me know your thoughts!
What’s the “Slow Down” ?
-New Builds Preferred
-Existing Home Pricing
Frisco Mortgage Loan Officer