Housing Market Reality, Global Inflation, and Fed Policy Shifts: Weekly Update
Navigating Higher Mortgage Rates, New Fed Leadership, and Celebrating Memorial Day Weekend
Happy Friday and Happy Memorial Day weekend! It is hard to believe that Memorial Day is already here. This week brought a lot of heavy data regarding home sales, global inflationary pressures, and big shifts in leadership at the Federal Reserve.
Let’s break down what is actually happening in the market right now versus what you might be hearing on the news.
The Housing Market: Active Buyers Despite Higher Rates
Despite the narrative you might see in the media, the housing market is far from crumbling. The data for April tells a story of resilient buyer activity, especially in the medium price points:
- Pending Home Sales: Up 1.4% for April. On a year-over-year basis, pending sales are up 3.2% compared to last year.
- Existing Home Sales: Flat for April, tracking up just 0.2%.
While it isn’t a booming market, it is completely steady. Buyers are remaining active in the marketplace, even while navigating higher interest rates.
Why Mortgage Rates Moved Higher This Week
This week, mortgage rates moved up by approximately a quarter percent ($0.25\%$). This upward pressure is not coming from domestic housing performance; it is entirely driven by rising oil prices stemming from the ongoing conflict in the Middle East and Iran.
Because oil costs create a ripple effect of inflation around the world, mortgage rates are likely to remain elevated until these geopolitical tensions resolve and energy markets stabilize.
A New Fed President and the Battle Against Inflation
Today, Kevin Warsh was officially sworn in as the new Federal Reserve President. He steps into the role facing a massive battle. While there was a lot of initial speculation that he would want to cut interest rates quickly, inflation has reared its ugly head once again due to those rising global oil prices.
Because of these cost increases, the Fed will likely be unable to cut rates anytime soon. In fact, there is a strong possibility the Fed may have to talk about hiking rates to successfully battle inflation before any cuts can safely be put on the table. We will have to wait and see how his leadership unfolds.
Join Us for Our Annual BOLDERBoulder Course Party!
On a much lighter note, Memorial Day weekend means it is time for one of our favorite traditions of the year: the BOLDER Boulder!
My house is right on the racecourse, and we throw a massive celebration every single year. This is our fourth year hosting the Guerrilla Fanfares, a incredible 12-piece brass band that keeps the energy high all morning.
We’ve officially stepped up our game for the refreshments this year. Last year, we ran out of five kegs of beer by 8:45 AM. Lesson learned! This year, we have nine kegs of beer ready to go.
- When: Monday, Memorial Day morning.
- Time: The party starts early at 7:00 AM.
- RSVP: None needed! Just show up and enjoy the fun. It’s easily one of the most exciting events of the entire year.
We Are Accountable 7 Days a Week
Even though it’s a holiday weekend, business doesn’t stop if you need us. We are available seven days a week, from 8 AM to 8 PM. If you have any mortgage questions or need to run numbers over the weekend, give us a call. Yes, I will absolutely answer my phone on Memorial Day!
Have a fantastic weekend, stay safe, and hopefully, we will see you at the course!
___________________________________________________________________________
Questions? Concerns? Ready to get started with my strategic buyer consultation?
Call me any day of the week, Monday- Sunday to get connected & learn about your options.
It’s never too soon to understand what you can afford!
303-500-3839
Brian@BrianManningTeam.com
LICENSED TO SERVE YOU IN:
- Colorado
- California
- Arizona
- Florida
- Wyoming
Oh yeah, want to get my weekly Friday Market Update straight in your inbox?? Join our mailing list!
Email me directly at Brian@BrianManningTeam.com