Monday Market Brief Aug. 7, 2023

What’s Up with Real Estate?

National news and local views for the week ending Friday, August 4, 2023

Hello Monday!!! Monday Market Brief for you… National Real Estate News

Time in the market

This quote was for stocks & bonds, but it applies to homes too! Home ownership builds massive wealth over the long-term. Over the last 35 years, national home prices have declined just 6 times, and the total increase between 1987-2022 was 351%! Worrying about trying to time the market perfectly is both unnecessary and difficult. Get invested, stay invested and watch your home equity grow.

Inflation fades…

Headline PCE (consumer inflation) – the blue line – fell to just 3.0% in June 2023 (from 3.8% in May 2023). Back in June 2022, it was running at 7.0%! And the “core” PCE (which excludes food & fuel prices) – the red line – also dropped sharply to 4.1% in June 2023 (from 4.6% in May 2023). So why is the Fed acting like inflation isn’t fading fast, when it so clearly is?

…but rates rise again

Interest rates (and mortgage rates) are supposed to follow inflation down – and eventually they will. But with the Fed continuing to lift short-term rates, and the recent downgrade to the USA’s sovereign (government) credit rating, treasury yields have gone in the opposite direction, sending average 30-yr mortgage rates back to 7.2% – approaching the peak levels in Oct 2022.

Local Market Trends

As of Friday, August 4, 2023

Do you want to see the lastest market trends in the area your are living in. The data below is the closest cities that I am near. I can provide local data for your area. Let’s talk!!!