Mortgage & Housing Update 11/17/2024
Mortgage & Housing Update 11/17/2024
The inventory of homes for sale is up 28% year-over-year, which means choices for buyers! But 30-yr mortgage rates are back near 7%, which hurts affordability for buyers. It's tough to think about making a move right now,. But don't forget: home ownership builds wealth, and getting started is the key.
CPI was flat in October
"Core" CPI (which excludes food & fuel prices) rose 0.3% month-over-month in October, keeping annual inflation flat at +3.3%. However, "Headline" CPI (which includes everything) climbed from +2.4% in September to +2.6% in October. The lacking progress of getting inflation lower was disappointing, but at this time, the market is pricing 79% probability of another 25 bps cut in Dec, and 606 probability of holding in Jan. [Source: BLS]
Mortgage Market
After surging higher for all of October and into November, average 30-yr mortgage rates appear to be consolidating around 7%. Q: With the Fed cutting short-term rates, why are mortgage rates not following the Fed Funds Rate lower? A: Concerns that President-elect Trump's policies could boost growth but also reignite inflation and/or further increase the deficit. [Source: Mortgage News Daily]
Housing builds long-term wealth
The median net worth of homeowners has risen from $296,000 in 2019 to $415,000 in 2024. That's up 40%! Over the same time period, the Case-Shiller national home price index has risen 50%. See the connection? Owning a home builds wealth. Renting a home builds your landlord's wealth. [Source: NAR, S&P DJI]
Thanks for tuning in to my Mortgage & Housing Update. [source: List Reports] My name is Pauline Lee. I am a real estate professional, with an expertise in financing. Connect with me for a consultation and to get mortgage ready. I encourage you to get pre-approved.
Pauline Lee | pauline@indmortgage.com | 617-965-1988 x205
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