Housing Market Update | Week of April 22
April 22, 2024
Housing Market Update | Week of April 22
Last week, mortgage rates rose again due to decreased confidence in a rate cut by Federal Reserve Chairman, Jerome Powell. The current strong economy & labor market, stagnation with inflation figures, and rising conflict in the Middle East are all contributing factors preventing rates from dropping. Friday’s PCE report will provide some foresight into the length at which the Fed will want rates to stay higher for greater economic health.
Although we all want lower rates, there has still never been a better time for our clients to buy. Inventory is starting to rise, and less competition means our buyers are more likely to have an offer accepted at a price that works better for them. We launched my new pre-approval form today; this will help our buyers hit the market with an accurate budget in a snap. Share my new pre-approval form with any interested buyers to help them get started!
Mortgage rates rose again last week largely due to statements from Jerome Powell that indicated a lower possibility of rate cuts anytime soon. In an appearance at the Washington Forum, Powell cited a strong economy and labor market preventing rate cuts. As has been the case this year, a sharp rise in jobless claims will be what it takes to catalyze rate cuts this year.
The big-ticket item in the housing market this week will be the Fed’s preferred measuring stick for inflation: the PCE report. The Fed has been targeting inflation at 2% for more than a year; it’s expected that headline inflation will sit just above 2.7% after Friday’s report. With inflation stalling, it will likely take a higher unemployment rate for the Fed to move forward with rate cuts.
The first step to an easy homebuying experience for our clients starts with a pre-approval that gives them an accurate estimate of their buying power. It’s never been easier to get pre-approved with my brand-new custom pre-approval form. Feel free to share it with any prospective clients who are itching to start their homebuying journey!