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!
Supply Isn’t the Story, Demand Is.
Be a leader for your clients.
Financial Independence for Early Retirement through House Hacking
Don't Be Afraid of No from Your Lender
Buyers, Sellers, Agents, this is not the time to rest.
Forbearance and Unemployment Numbers' Effect on Denver Real Estate Market
Giving Agents the Tools to Be Essential Human Resources for Buyers and Sellers
Resurgence of HOME and how it affects the Denver real estate market
Know Your Loan Options Renovation, CHFA, Jumbo, Conventional, FHA, USDA, and VA
Making Your Professional Memberships Work for You
Use Your Extra Time to Learn All You Can and Add Value
Daily Disciplines and Increasing Your Value
Celebrating the Resiliency of Agents
DMAR for August - Real Estate Did Not Surprise; It Delivered
Getting Out of Your Own Way
Zoom Logic for Beginners and Gems for More Advanced Users
Succeed During Change With Excellence and Ethics
Agents - avoid being annoying online - be of value to community.
Virtual Home Tours to Give You an Edge Over Your Competitors
Be willing to fail and think of your agents as your clients.
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast