TODAY’S RATES & HOUSING NEWS

Interest rates went up approximately .05%
for the week with the Mortgage Backed
Security (MBS) market trading
down – 16 bps.

On Monday, FED Chairman Powell stated:

“This is not a committee that feels
like it’s in a hurry to cut rates
quickly.  If the economy performs
as expected, that would mean two
more rate cuts this year, a total of
50 [basis points] more.”

Much of the market was hoping the
FED would be more aggressive
in their path and statements.
Powell has made it clear that the
FED will follow the data and they
don’t have a preset path of
aggressive rate cuts.

This is a big reason we have seen
rates increase slightly since the FED
lowered the Federal Funds Rate
50 bps.

On Friday, the PCE Inflation report
came out. Year over Year inflation
dropped from 2.5% to 2.2% and
Core Inflation (taking out food and
energy) rose from 2.6% to 2.7%.

The data supports the notion that
inflation is moving closer to the
FED’s target range of 2%.

The big market mover this week is
the BLS Jobs Report on Friday,
October 4^th.

Below are Mortgage News Daily’s
average interest rates across the
country. There are a lot of characteristics
that go into a mortgage rate – credit
score, investor, loan to value, loan
amount, costs, etc.

Please call me to go over your specific
scenario so we can price your loan
out accurately.

OR reply to this email with the answers
to the questions below for Mortgage
Options for your scenario.

REFINANCE QUOTE:

Goal of Refinance – Lower Payment, Cash Out, Etc:
Address of Home:
Estimated Value Of Home:
Current Loan Amount:
Loan Amount You Would Like to Finance:
Current Rate:
Do you know what type of Loan you are Currently in – FHA, VA, etc:
Estimated Credit Score:
Are You a Veteran or Active Member of the US Military: 
If you are a Veteran, do you get VA Disability:

PURCHASE QUOTE:

What City and State Are You Looking to Buy In: 
Estimated Purchase Price:
Loan Amount You Would Like to Finance:
Will Property be a Primary Residence, Investment Property, or Vacation Home:
Estimated Credit Score:
Are You a Veteran or Active Member of the US Military: 
If you are a Veteran, do you get VA Disability:

Thank you!

IS THIS THE SWEETSPOT HOMEBUYERS
HAVE BEEN WAITING FOR?

With many potential home buyers sitting
on the sidelines waiting for interest
rates to drop, homes continued to rise
in value. This rise in home prices
and likely loan amount and down
payment has taken away a lot of
the benefits of a lower rate.

This could be the sweet spot right now
as interest rates have fallen close to 1%,
and home inventory is starting to rise
thus, lowering the rate of home
appreciation, while also giving buyers
the ability to negotiate favorable terms
with sellers.

If you have been waiting on the sidelines
to purchase, now may be the time to act.
See article below:

https://www.simplifyingthemarket.com/en/2024/10/01/this-is-the-sweet-spot-homebuyers-have-been-waiting-for?a=416053-92a5e147583580fe9c623b0e517c01ac

HOME PRICES RISE 5% YEAR OVER YEAR

According to the Cash Shiller National
Home Price Index, U.S. home prices
rose 5% year over year and hit
another all-time high.

The pace of appreciation is slowing
significantly, as home prices only
rose .2% from the prior month.
The Case Shiller index is on a
3-month delay and the numbers
are reflective of July 2024. It will
be interesting to see what happens
in the next few monthly reports as
interest rates started falling
significantly in July.

Here is the year over year home appreciation
by city in the 20-city housing index.

1. New York +8.8%
2. Las Vegas +8.2%
3. Los Angeles +7.2%
4. San Diego +7.2%
5. Cleveland +7.0%
6. Chicago +6.7%
7. Detroit +6.6%
8. Boston +6.5%
9. Miami +6.5%
10. Seattle +6.0%
11. Charlotte +5.8%
12. Washington +5.5%
13. Atlanta +4.5%
14. San Francisco +3.4%
15. Phoenix +2.9%
16. Tampa +2.2%
17. Minneapolis +2.0%
18. Dallas +1.9%
19. Denver +1.3%
20. Portland +0.8%

Have a great week!