Market Update - July 3rd, 2023
I can’t believe we are already half-way through 2023! In between all the fireworks and festivities, read up on what’s happening in the mortgage world.
This week’s “value bomb” covers 7 ideas realtors can leverage to dominate the luxury real estate market. Scroll down for details.
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2 Rate Hikes Now Priced In
Last week, Jerome Powell was in Portugal fielding questions about the state of the economy. In that conversation, he reiterated that most of his committee expects 2 more rate hikes this year. With the continued conversation indicating the likelihood of 2 more rate hikes this year, the markets started pricing those into interest rates.
Key Takeaway: Rates pulled higher late Wednesday into Thursday moving the average 30-year fixed rate above 7%. Many experts suggest there is room for continued movement higher. It continues to feel like it’s going to get worse before it gets better.
Student Loans Impact on Inflation
This past week, the Supreme Court struck down the President’s plan to relieve up to $20,000 in student loan debt. With the decision in our review mirror, we now look ahead to the commencement of paying back these loans, which have been paused for over 3 years. The US Department of Education currently expects “Student loan interest will resume starting on Sept. 1, 2023, and payments will be due starting in October.”
Key Takeaway: According to the Federal Reserve Bank of New York, the average student loan monthly payment is $393. Approximately 13% of the US population has student loan debt. With student loan payments resuming, this may be the catalyst necessary to force a large group of the population to pull back on spending, which should eventually reduce inflation.
7 Tips to Dominate Luxury Real Estate
Luxury real estate is a highly competitive industry and standing out is challenging.
However, there are several "secret" gems that can help Realtors dominate the luxury real estate market. We compiled 7 great ways to start establishing yourself as an expert in that niche. Remember, this is a long game.
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