Strap in, this is a long one!
Last week the CPI came out not as expected. The percentage doesn't matter as much as the DIRECTION... it went up! This threw the market for a loop. Interest rates did increase and now the headlines are making you believe we are going into depression.
WE ARE STILL IN A STRONG HOUSING MARKET.
The likelihood of massive job loss and massive loss in the stock market is not likely... granted it may feel like it today.
Interest rates increased from 5.5% last Thursday to 6.18% yesterday. As we go into FED week, the market was expecting a 50bp increase. However, with the increase in CPI, the FED may be forced to increase that rate even more. That possibility of change is what makes the market react. The market likes knowing what is going to happen. So when the possibility of change looms, it begins to move.
Bottom line is that rates went up for several reasons, but we remain part of an incredibly strong real estate market.
I want to talk about the interest rates first because they went from 5.5 on Thursday to 6.18% on Monday 5.5% . That is a massive jump. Especially if you are watching my live session. I said, hurry up and get under contract, take advantage of the interest rates that we have today because next week we're going into the fed.
Now, even when interest rates started to go up, a lot of people are asking me how high do you think, they could go? And I was like six and a quarter, right? So we're here. We're at 6.25%. We made it, do we go much higher? I don't know. I don't know because the fed where we're at right now is a little bit unchartered. We've got this quantitative tightening that's happening and how aggressive the fed, uh, goes, is going to push interest rates. But what interest rates are doing right now is squelching demand. It's authentic demand reduction.
Listen to this episode as I also cover the continuing reasons the housing market is so strong. GET IN NOW!
How You Can Find and Benefit from an Assumable Loan
PPI Numbers Explained: Is Inflation Finally Slowing Down?
Can I Buy Down My Interest Rate?
First-Time Homebuyer Advantages in Today’s Market
Housing Today Comes Down to These Things
Eight Home Buying Myths
What Are Seller Concessions?
Discussing the Current Real Estate Market Landscape
Focus On the Payment, Our Economy Works In Cycles
3 Ways to Get Rid of Your Mortgage Insurance
Using Current Market Volatility To Your Advantage
Interest Rates are Below 5% Again
Why a Real Estate Slowdown Is Not a Loss
Should I build a home instead of buying a home?
How Does the Global Market Movement Influence the US Real Estate Market?
Can the Recession Just Get Here?
Four Reasons Real Estate Just Picked Up Again
What Are Your Responsibilities as a Co-Signer on a Mortgage?
Conforming Home Loan Limit Increasing to $715,000
DMAR Sept 2022 Homeowners Have the Upperhand
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