This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Market Commentary:
For the week of Sep 20th to Sep 26th, interest rates have been steady. The Federal Reserve made a larger-than-expected rate cut last Wednesday, as the central bank said it now wants to ease up on its economic brakes. That decision is already trickling down into lower rates on some lending products, potentially providing financial relief to millions of Americans. Mortgage rates also dropped last week, decreasing to their lowest point since February 2023, according to Freddie Mac. "The real impact will come from future reductions, at least one of which is expected to come by the end of this year," Schulz told CBS MoneyWatch.
Fed Watch: Target rate (in bps) possibilities, according to the CME Group (as of 9/26/2024 – 12:30 PM EST):
Market Review: Optimal Blue's Production Metrics:
Housing Market Predictions for Next Year: Prices to Rise by 4.4%
-Goldman Sachs
50 State Home Price Index – First American Data & Analytics - Aug 2024:
Top 30 Core-Based Statistical Areas:
Price Tier Highlights:
Consumer Confidence
The Conference Board’s consumer confidence index sank a whopping 6.9 points in August, its biggest one-month decline since 8/21, when inflation was beginning its dreadful climb. This time, the concern is labor markets. 18.3% of respondents consider “jobs hard to get” the highest percentage since 2017, while the percentage reporting “jobs easy to get” was 12.6%, the lowest level since 2017. Simultaneously, expectations are teetering slightly above recessionary levels.
- Elliot Eisenberg, Ph.D. , Economist
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*Communication is intended for Industry Professionals only and not intended for Consumer Distribution
Interest rate and annual percentage rate (APR) are based on current market conditions as of 09/26/2024, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC, dba Edina Realty Mortgage. Not available in all states. Rate is as of 09/26/2024 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
