Here we go, yet another FED rant by yours truly! CPI numbers on Tuesday were very good for the bond market and we saw a huge improvement as rates fell significantly. PPI numbers on Wednesday were also pretty favorable as well, even though the bond market rose, and we gave back some of the gains we saw on Tuesday. With a little help with further increases in today’s initial jobless and continuing claims numbers, the FED might just have to get the message that inflation is falling and the economy is struggling. Dear FED members, time to STOP all the talk about raising rates further and allow what you have already done to get through the system. Do NOTHING, keep your mouth shut, enjoy the holidays, and come back in 2024.
On the brighter side of things, mortgage applications were up again this week, purchase applications were up by 3% week over week and refinances were up 2% week over week and 7% year over year! Given mortgage rates are higher than they were this time last year, the message is getting out that it’s all about total monthly payments, not just the rate on your mortgage that matters. As consumers continue to pile up record debt on credit cards, and as student loan repayments start impacting budgets, opportunities for refinances are growing every day!
We have a few weeks left to put together deals that will close and count for 2023 numbers; you really need to reach out to all of your preapprovals, as well as all of your referral partners and make them aware that NOW is the time to take action! Especially all the people who may have got sidetracked as rates pushed the 8%-mark, today’s pricing will really help their purchasing power! Your real estate agents also need to reach out to buyers and sellers and make them aware, there is still time to be in your new home for the holidays; but they need to get moving!
Next week is Thanksgiving, so I will make the post on Friday. Have a happy and healthy Thanksgiving, and remember, Thanksgiving weekend is a great time for leftovers, sales, and OPEN HOUSES!
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