Real Estate Market Minute Mark Salib

Inflation data from last week is telling us that rates should come down in the near future. Just when will they come down, and how big an impact could it have on the real estate market when they do?

The economy is starting to show some cracks and that might just be what is needed for the FED to act and cut interest rates. I go over that and another scenario that the homebuilders face making my case for why I think interest rate cuts and a lower 30 year-fixed mortgage rate could be headed our way by the summer.

The NAHB has outlined a plan to the government to boost housing supply. The 10-point plan is aimed to ease shelter inflation and remove barriers that hinder the construction of new homes. This higher for longer interest rate environment continues to cut into housing supply. I explain the NAHB’s plan and what you can read between the lines as it pertains to the future of the housing market.

This morning the government released the April Jobs Non Farm Payroll report and it was well below expectations. Unemployment rate also ticked up to 3.9%. Was does this all mean for interest rates and ultimately the 30 year-fixed mortgage rate going forward, and how significant could this new development be to the housing market?

Yesterday the Federal Reserve decided to leave rates unchanged. But that was not all they said. In fact, I think one of the most important and overlooked things from their statement will have a direct impact on interest rates this month and, therefore, directly impact both the bond market and the 30 year-fixed mortgage rate going forward.

Pending home sales which represent homes that go under contract rose 3.4% in March. While the rise is encouraging we are still at multi-year lows overall. What will it take to increase the volume of home sales and what will be the end result to the housing market if all of these things that I think is inevitable come together?