Friday, August 9, 2024 National news and local views

National Real Estate News Jobless rate jumps Last Friday’s jobs report showed that the US economy added 114,000 jobs in July, far below expectations of +175,000. More worryingly, the unemployment rate jumped from 4.1% to 4.3%. Suddenly everyone was talking about recession risks again. Did the Fed wait too long to begin cutting rates? [Source: Bureau of Labor Statistics] Mortgage rates move lower The yield on the 10-year US Treasury dropped from 4.0% to 3.8% (it was at 4.5% in early July!), with the market now expecting a 50 basis point (0.5%) rate cut on September 18. Average 30-year mortgage rates fell to a low of 6.34% on August 5 (the Monday after the BLS jobs report). [Source: Mortgage News Daily, CME] Get ready If high mortgage rates have kept you 'on the fence' about buying your first home or upgrading your existing one, it's time to start putting a plan together. The Fed is about to start cutting rates, and mortgage rates have already moved significantly lower. Plus, there are more homes to choose from! I'd love to meet up with you to discuss the market and your housing needs. Local Market Trends Area Median Price Active Listings New Listings - 5 days Median Days on Market Chandler, AZ $594,950 0% 434 0% 43 38 0% Gilbert, AZ $669,000 0% 569 0% 47 43 0% Queen Creek, AZ $699,497 0% 615 1% 36 71 0.3% Mesa, AZ $499,000 0% 1047 0.1% 105 44 0% Local Market Trends (/) from Jul. to Aug. 2024.   Lorana Ellard Real Broker License #SA684219000   Questions about these articles or the state of your local market? Get in touch! 623-400-6657azhomerealestate1@gmail.com ©ListReports 2024, all rights reserved. This information is from third-party sources and its accuracy cannot be guaranteed.

Friday, August 2, 2024 National news and local views

National Real Estate News The rate cuts are coming The Fed kept short-term interest rates on hold (target range of 5.25-5.50%) for the 8th-straight FMOC meeting. But Fed Chairman Jerome Powell's comments during the press conference suggested that solid progress on inflation and the recent rise in the unemployment rate above 4% put a September 18 rate cut "on the table". [Source: Federal Reserve] Mortgage rates drop The US treasury and mortgage markets don't have to wait for the actual Fed rate cuts - they respond to new information (in this case, quite dovish) immediately. The yield on the 10-year US treasury has dropped from 4.3% to under 4.0% in just over a week, and that's helped average 30-yr mortgage rates drop to 6.62%. Finally, affordability is improving! [Source: Mortgage News Daily] Another price record Apart from a few big metros, home prices keep rising. The latest Case-Shiller data for May 2024 showed that the national home price index rose 0.3% month-over-month. That means that prices have already risen 1.8% in the first five months of the year. Annualize that, and you'd get 4.4%. The 'cost of waiting' for lower rates has been brutal: home prices have risen 14% in the last 2.5 years. [Source: S&P DJI] Local Market Trends Area Median Price Active Listings New Listings - 5 days Median Days on Market Gilbert, AZ $670,000 0% 541 0% 43 44 0% Chandler, AZ $595,000 0% 431 0% 47 36 0% Queen Creek, AZ $699,990 0% 605 1% 17 70 0.3% Mesa, AZ $497,750 0% 1036 0.1% 73 43 0% Local Market Trends (/) from Jul. to Aug. 2024.   Lorana Ellard Real Broker License #SA684219000   Questions about these articles or the state of your local market? Get in touch! 623-400-6657azhomerealestate1@gmail.com ©ListReports 2024, all rights reserved. This information is from third-party sources and its accuracy cannot be guaranteed.