TODAY’S INTEREST RATES
Last week, The FED raised the Federal Funds Rate 25 bps as expected.
This didn’t have any major movement on interest rates as these moves are telegraphed well before they happen.
The bigger news over the past week was the US Jobs Report which showed 517,000 jobs created.
The job creation number was well above expectations.
Strong economic data is typically better for the stock market and worse for interest rates.
This pushed interest rates to their highest levels in a month.
Below are average mortgage interest rates across the country.
Per MBS Highway, most of the job creation was an illusion with seasonal adjustments and population controls.
With many companies announcing large layoffs, I tend to agree with them.
The FED’s next meeting is 3/22.
Below is a summary of the FED’s statement last week.
HOUSING MARKET SHOWS SIGNS OF THAWING
Per the Wall Street Journal – the Housing Market is showing signs of thawing.
The article is behind a pay wall but it’s good to see national publications reporting what we are seeing.
Increased buyer demand while listings remain low.
Mortgage rates are a bit higher today, but are still close to 1% lower than they were a few months ago.
Per Keeping Current Matters, they see house buyer demand highly dependent on interest rates.
With current interest rates in the 6-6.5% range – they see good buyer demand and stronger demand coming when/if rates go into the 5%s.
The lack of inventory and increased demand is starting to show in housing price stability.
New listings continue to lag behind pre-pandemic years.
The law of supply and demand has helped home prices stabilize sooner than many expected.
Supply remains low and demand is picking up.