West Main Homes’ Post

 ✂ Inflation Drops Again in June, Clearing the Path to a Fed Rate Cut This Fall—and Relief for Homebuyers Annual inflation in the U.S. dropped to its lowest level in more than three years last month, increasing the odds of a September interest rate cut that would bring relief to mortgage markets. In the 12 months through June, the consumer price index rose 3%, according to data released by the Department of Labor on Thursday. It was the lowest annual increase in prices since March 2021. On a monthly basis, overall prices dropped 0.1% in June from May, the first monthly decline since the onset of the COVID-19 pandemic in spring 2020. Costs for energy and vehicles dropped on both a monthly and annual basis, offsetting rising housing prices. Prices for shelter, which make up more than a third of the index, continued to rise last month under the Labor Department’s method of calculating housing costs. Rent rose 5.2% from a year ago, while owner’s equivalent rent, a measure of what homeowners would pay to rent their own residence, was up 5.4%. For potential homebuyers, the overall cooling of inflation toward the Federal Reserve’s 2% target could mean incoming relief from higher mortgage rates. The central bank is now viewed as extremely likely to slash a quarter point from its current benchmark rate of 5.3% when policymakers meet in September. Get all the details at https://lnkd.in/gKjGwJFS

"Annual inflation in the U.S. dropped to its lowest level in more than three years last month, increasing the odds of a September interest rate cut that would bring relief to mortgage markets." Are you waiting on the sidelines to get into the real estate market? If you are currently renting but would like to discuss ways to take advantage of this buyer's market, please let me know. With the rise of inventory in the Denver metro area sellers are getting creative to attract buyers to their homes, offering concessions in the form of paying down interest rates, covering closing costs, or providing cash to buyers to cover things like HOA dues. In real estate, there is typically no better time to invest than now given the way homes appreciate over time. If you're looking to make moves, let's chat! https://lnkd.in/gsYxvS6P #realestate #investing #denverrealtor #denverrealestate #homebuying #buildingequity #wealthbuilding

Inflation data came in favorably last week, causing the ten-year yield to drop and mortgage rates to fall into the mid to high 6% range. This is great news for homebuyers and sellers.👀 Inflation for April was 0.3% higher than March but below expectations at 3.4% year-over-year. The ten-year yield dropped to 4.3-4.4%, and mortgage rates dipped below 7% for the first time in weeks. This is positive for buyers and sellers. 📉 The Federal Reserve is expected to keep rates the same at their next meeting, with possible rate cuts later in the year. This is the lowest mortgage rate in six weeks, and affordability has improved as inventory grows. In Pennsylvania, inventory is up 6.7% year-over-year. 🏡 If you're considering selling, now is a good time due to growing inventory and lower rates. Don't wait for prices to rise further as inventory increases in states like Florida, Arizona, the Carolinas, and Texas. 🤝 If you're looking to buy, take advantage of the lower rates. Time on market has increased, giving buyers more opportunities to make offers. Schedule a call with our team to understand your local market conditions and make informed decisions. 📲 https://lnkd.in/eAZmQums

Annual inflation in the U.S. hit a three-year low last month, increasing the likelihood of an interest rate cut in September to ease mortgage markets. The consumer price index rose by 3% over the 12 months leading up to June, marking the smallest annual price increase since March 2021. In June, prices dipped by 0.1% from May, the first monthly drop since the start of the COVID-19 pandemic in spring 2020. Decreases in energy and vehicle costs balanced out an increase in housing prices. Shelter prices, accounting for over a third of the index, continued to climb under the Labor Department's housing cost calculations. Rent surged by 5.2% from a year ago, while owner's equivalent rent, reflecting what homeowners would pay to rent their homes, rose by 5.4%. With inflation easing closer to the Federal Reserve's 2% target, potential homebuyers could see relief from higher mortgage rates. It is now highly anticipated that the central bank will cut a quarter point from the current 5.3% benchmark rate during the September policymakers' meeting. #inflation #mortgagerates #ThursdayThoughts #homeowners #realestateinvestor #homebuyers #rentalproperty #rent #HomePrices

The latest Consumer Price Index (CPI) inflation report brought encouraging news for potential homebuyers and those keeping an eye on mortgage rates. In June, the CPI dropped by 0.1% bringing the annual rate to 3%. This marks the first time inflation has dropped on a monthly basis and is the lowest level YOY in more than three years. A significant 3.8% decrease in gasoline prices helped offset increases in food and shelter costs, contributing to the overall dip in inflation. Additionally, the Federal Reserve may decide to cut rates to stimulate the economy. The recent CPI report strengthens the case for the Fed to consider rate cuts, potentially starting in September. As inflation trends downward, mortgage rates have already started to respond. This decline in inflation is significant for mortgage rates, as lower inflation typically leads to lower long term interest rates aka mortgage rates. The national average for a 30 year fixed conventional loan has dipped to 6.89% according to Freddie Mac's most recent survey, down from 7.22% in early May. For some who bought when rates peaked in October/November, it may already make sense to refinance.

Discover the latest insights on interest rates, inflation, and housing market trends! 💼📈 Despite the Federal Reserve's cautious stance, recent employment data triggered a rise in mortgage rates. 📉⚖️ Stay informed on pending sales and prepare for the upcoming spring homebuying season! 🏡💰 https://lnkd.in/gcRMFJ7e #InterestRates, #HousingMarket, #Homebuying

The Fed's rate hikes have slowed the housing market, but home $prices$ remain near record levels because home values are not driven just by interest rates%. "Some homebuyers who have been sidelined by affordability challenges are going to wait until rates come down to buy. Increasingly, home sellers may have to do more negotiating to attract offers." Read More: STEPS FOR BORROWERS: Here are some pro tips for dealing with elevated mortgage rates.......... HomeSmart Move Home Suncoast at HomeSmart FL. Thank you for the share Florida Realtors

Whose Money Is It Anyway? Today’s CPI release. Consumer prices rose 0.4% in February and 3.2% from a year ago Shelter and Gasoline — combined they contributed over 60% of the monthly increase in the index for all items. _____________ Homebuyers need to earn 80% more than in 2020 to afford a house in this market. Factors beyond high mortgage rates are affecting housing affordability for many Americans, according to experts. Almost four years ago, a household earning $59,000 annually could afford a new mortgage without spending more than 30% of their monthly income and with a 10% down payment. * That is no longer the case today. While the typical household in 2024 makes about $81,000 a year, up from $66,000 in 2020, wages have not kept up with housing costs. Around the mid-’90s, you start to see housing prices sort of separate from median wages in a way that kind of made housing less and less affordable for people who are in the market. “Since January of 2020, the typical mortgage payment on the typical home in the U.S. has nearly doubled. Nowadays, potential homebuyers need to make about $106,500 a year in order to afford the typical home today, an 80% increase from January 2020. - CNBC Alexandra Esquivel-Murphy Joseph Esquivel-Murphy Don Ullmann

In response to the latest CPI numbers, we acknowledge the mixed signals these present for the housing market. February saw a 0.4% seasonally adjusted increase in the CPI, with the index for shelter contributing significantly to this rise. The all items index increased by 3.2% over the last 12 months, indicating a steady yet cautious inflation environment. Specifically, the shelter index has increased by 5.7% over the past year, which is a critical factor for housing affordability and mortgage rates. Homebuyers should remain cautious and consider the potential for rising costs when planning their purchases. For those thinking about buying a home or maybe refinancing, this kind of news can be a bit unsettling. Prices are climbing, and it looks like borrowing might get pricier too. But it's not all doom and gloom. Energy prices are actually down over the year, which is a silver lining since it can help balance out some of those higher costs. We are closely monitoring these trends to adapt our lending strategies and ensure we continue to offer competitive and responsible mortgage solutions. Our goal remains to support our clients through changing economic conditions, providing clarity and stability in their home financing needs.

THE SKY IS FALLING…I MEAN RATES ARE FALLING…INTEREST RATES THAT IS… Why Economists Expect Rates to Come Down Home borrowing costs have inched lower towards the end of June, hitting their lowest level in almost three months, but mortgage rates have been on a roller coaster for the past few years. The 30-year fixed rate mortgage was 2.65% in early January 2021, then it hit nearly 8% in November of 2023 and is currently around 6.84%. “The 30-year fixed-rate mortgage continues to trend down, hitting the lowest level in almost three months,” said Sam Khater, Freddie Mac's Chief Economist. “By historical standards, the economy is in good shape, and we expect rates to continue to come down over the summer months, bringing additional homebuyers back into the market.” That's a great quote but there are headwinds for the housing sector and borrowing costs. Just recently, Fed Chair Powell said that the recent inflation report showed that pressures were easing but that could be the low point for the year. The Treasury continues to offer unusually large amounts of bonds and notes and the added supply could cap any gains therefore it could be tough to see lower interest rates. Regarding inventories and prices, trade-up buyers are almost nonexistent as homeowners are reluctant to give up their low rates in exchange for a higher rate on a trade-up home. Strong demand and tight supply are expected to push home prices up, potentially leading to further increased home prices in both 2024 and 2025. Looking ahead, expect mortgage rates to hover above 6.5% through the end of the year, which compared to the rates as high as 7.8% witnessed last year is a positive development and could offer some respite for potential homebuyers. Bottom line: Despite rates staying somewhat elevated, always remember that jobs buy homes and if you are secure in your current position you could be on your way to homeownership. Call me today and let’s discuss your real estate needs, 706-936-7796(c) or 706-291-4321(o). #hardyrealty #interestrates #fallingrates #realtor #homebuying #myfrontporchview #myhome