Happy Friday, Brian Manning here again, with the weekly update. Let’s see how it’s going this week. So Monday this week, we had existing home sales. This is for the month of July, on a month over month basis, existing home sales were up 2%. On a year over year basis, up 1.5%. That’s just an incredibly strong report. So good to see continual strength in housing. That’s a phenomenal existing home sales report. So I was super pumped to see that and just the components of this report, first time home buyers making up 30% of all purchase transactions. So they’ve been holding strong, first time home buyers have really been in that 30% to 32% range, which is good to see.
Cash buyers still making up 23% of all transactions again. Last year, cash buyers were taking about 16% of all transactions, that’s up to 23% and holding right now. And investors moved from purchasing 14% to 15% of market share. So just a really strong really great report to see. Then we got some inventory information. Inventory is really up from the prior month at 7% but on a year over year basis, inventory is still down by 12%. So we definitely have seen some inventory challenges all year, perhaps we see a little bit of softening coming into the fall, which really wouldn’t be bad to see, I would really love to see some more inventory out there. It would be really wonderful for everyone that’s trying to buy a home. I even think there’s more buyers that could get into the market if more inventory became available. So we’ll have to wait and see what happens.
Tuesday, we got new home sales. New home sales on a month over month basis were up 1%. So still great to see strength in the new construction housing market there. Wednesday this week was the start of the Federal Reserve meeting. So the Federal Reserve meeting starts on Wednesday, leading into today, we’ll finally get some comments from Jerome Powell today, all eyes are really on the Fed right now, because they’re in the process of doing what’s called quantitative easing, and in quantitative easing they’re purchasing bonds on a monthly basis. And when they’re purchasing mortgage backed securities, not only are they purchasing bonds, but they’re also reinvesting every month.
So what that means is they have this balance sheet, and they have all these mortgage backed securities that they hold and every single month, when someone sells a home or someone refinances and the mortgage backed security that the Federal Reserve holds is getting paid off, they’re reinvesting that money as well. And right now all investors and eyes are on the Fed because we’re waiting to see what the Fed is going to do. Is the Fed going to start tapering? Are they going to announce anything regarding the tapering of bond buying? You know, if they just taper bond buying but they keep their reinvestments going on a monthly basis, that’s not really so bad, that’s going to hold rates down but if they taper out of their bond buying, and then they let their balance sheet runoff, and they don’t continue these reinvestments, that’s going to have more of an impact on interest rates. So I’m not really sure which way it’s going to go, all eyes are on the Fed today. You know, Jerome Powell has really done a good job over time of just kind of talking more to consumers and to investors. So he kind of lays it out in layman’s terms, which is really great to see on a continual basis. So I’m excited to see what he says today but all eyes are on the Fed right now.
Happy Friday. Hope you have a great day. I’m around all weekend. If you have any questions, give me a call, text me – I can run some numbers for you, help with a pre-approval, or go through a strategic buyer consultation. I’d love to help you in any way I can. Hope you have a great day!