Video
December 1, 2023
Airs live on YouTube
December 1, 2023
Rates Dropped This Week! What Can We Expect Next?
Market Update
Coming Soon
Follow us on YouTube to watch live!
Exciting news on the mortgage front! In the past 45 days, mortgage rates have come down almost 1%!
Could we be on the verge of breaking out of the 7% range and slipping back into the 6% territory next week? Stay tuned!
This week, we had some positive inflation news with the PCE, the Personal Consumption Expenditure, which is the Fed's favorite report of inflation. However, there are still concerning signs in the job market as continuing jobless claims reached over 1.9 million, which is the highest level in over two years. In other words, it's where individuals who have lost their jobs are facing challenges in securing new employment.
Looking ahead to the upcoming week, it's crucial! We have job numbers coming out from ADP and the Bureau of Labor Statistics. If those are weak reports, it could contribute to a further decline in mortgage rates.
On a different note, last week's GDP figures showed a robust economy with ongoing consumer spending over 5%. Unbelievable! However, there are questions about the sustainability of this trend given that the consumer debt has surpassed $1 trillion in savings - near historic lows.
Bill's theory is that we have what's called the home wealth effect. As home values have continued to rise, people find themselves with substantial home equity providing a safety net in case they exhaust their savings. Will this lead to an influx of homes on the market next year? Stay tuned for more developments in that.
But some people may have to sell their home just to get out of debt. So now is the time to prepare your buyers to make a move. Data indicates that a 1% drop in rates can attract upwards of 3.5 to 5 million potential homebuyers into the marketplace because of better affordability.
Buyers are adjusting to the new norm of higher rates, and they're going to start taking action next year.
Here's one last interesting stat to ponder: According to a recent Atom analysis, January 9th was identified as the single best day to buy a home, offering the best deals of the year. And we all know January 9th is right around the corner!
Featuring:
The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
Mortgage News Daily (MND) is a trademark of Brown House Media, Inc. Zillow is a trademark of Zillow, Inc. CrossCountry Mortgage has not been authorized, sponsored, or otherwise approved by Brown House Media, Inc. or Zillow, Inc.
Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call (858) 259-8700 for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the federal government. CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office or any government agency. Certificate of Eligibility required for VA loans. By refinancing, the existing loan total finance charges may be higher over the life of the loan.
