WOW. This was supposed to be THE year for rising rates, right? Much of the media speculation centered around what could happen in 2019 focused on the big window of refinancing being over, and the concern of buyers getting priced out of the market due to the cost of borrowing money. What a pleasant surprise for many as a 22-point drop in basis points erupted into the largest one-week rate decline in over a decade!
While mortgage applications for refinances showed the most momentum (returning to levels not seen for several years), purchase applications also increased. Interestingly, the average loan size for purchases actually declined slightly, a positive sign of first-time buyer activity increasing in the market.
Friday’s jobs report added some mixed feelings to the bag, but ultimately rates fell back to the week’s best levels! While job creation surpassed expectations (196K jobs created vs, 180K jobs forecasted), there was a noted decrease in the number of adults who considered themselves part of the workforce – which caused the unemployment rate to hold steady rather than decline. This coupled with the slide in hourly earnings lowered inflation risk, which helped rates move lower.
In short, real estate is just like the rest of life; be ready for anything! Sellers concerned about moving up or loss of buyers in the market may have SO many more options than they anticipated this year. And more buyers are on the move than expected since rates have seemingly opened up more possibilities for FTHB’s. My best advice is to always keep your goals at the forefront of your mind and let the trusted real estate and finance professionals support you in timing and strategy. When there is a will, there is a way, and I am always determined to help you find it!
All my best,
Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/