Market Update - October 30th, 2023
Hello all! Happy Halloween week! Make sure you bundle up those kiddos! Of course, we get the first whisper of snowflakes falling on trick-or-treat ☹ We are here to breakdown another eventful week in the mortgage world!
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Another Fed Week on Tap!!
Big week ahead as it is the second to last Fed meeting of the year! It is highly likely that the Federal Reserve won’t increase interest rates (thank you, Jesus!) when they meet again this Wednesday. Plus, because the Fed members have spoken a lot within the past couple of weeks, it will be tough for their official statement from Powell’s press conference to tell us anything new. Still, we will be paying close attention to see if they give us more hints on what they plan to do in the future.
Key Takeaway: Almost guaranteed Fed will be keeping rates unchanged this week. If they indicate they are done hiking for the foreseeable future, we may see rates improve. If they indicate that they may need to continue rate hikes to cool the economy, we may see rates push higher.
Ignore the Media - A Wave of Foreclosures is Ridiculous!
We all know the media loves to stir up fear and promote mass hysteria. As real estate and financing professionals, it’s our responsibility to sift through the data and relay the factual information about our industry.
As of late, we have read a number of articles highlighting the fact that foreclosures are skyrocketing as people can’t afford their mortgage. The most recent headline read: Foreclosure Filings in US Spike 34% Annually in 3rd Quarter. These types of articles are misleading and causing unnecessary concern. Such headlines are comparing current foreclosure activity to the foreclosure moratorium period of the past couple of years, which is ridiculous. Of course, the current foreclosure activity is going to seem excessive when comparing it to a time when it was nearly impossible to foreclose on a home during the pandemic years. In fact, looking at historical data, the number of foreclosures is currently at near all-time lows.
Key Takeaway: We can’t let sensational articles and clickbait headlines shape how we see the housing market. It’s more important than ever to expose those who are trying to induce panic.
It’s essential to share accurate information as we are in the trenches every day. The housing inventory remains extremely low, and individuals are sitting on massive amounts of equity. Unless there is a substantial surge in supply combined with a severe decline in employment, it is highly unlikely that foreclosures will reach the levels experienced in 2008 anytime in the near future.
Instagram Posts from Last Week
Don’t hesitate to reach out if you need anything at all. Have a wonderful week!