Inventories, Rates and Inflation
The Fed kept rates unchanged and shot down a March rate cut scenario at their February meeting, additionally adding that future rate cuts are very much data dependent. The economy had a better than expected Q4 and 353,000 jobs were added in January. Inflation, unfortunately, continues to be stubborn.
While inflation grew at 2,9% in December, CPI (Consumer Price Index) data came in at 3.1% annual rate as of the twelve months ending in January, not great news for the Fed and for those hoping for a March rate cut.
Year over year, S&P Corelogic Case Shiller Index showed that home prices increased 5.5% over a year ago. Corelogic is forecasting a 2.8% increase nationally for 2024.
Mortgage rates are expected to stay relatively steady. One huge headwind is proving to be insurance availability and increasing premiums. It's becoming more common to have buyers scrambling to find insurance for their new home before close of escrow. My advice, line up your carrier ahead of time.
Check out the market stats below..... the three month rolling period is showing relatively flat prices for almost all areas. While rates are higher and inventory is slightly higher, it's still not enough to offset buyer demand as we are seeing a good amount of inventory go into escrow within 2-3 weeks.
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Weekly national mortgage rates for loans under $400,000, top credit scores:
| 30 yr. fixed rate | 7.47 | ||
| 15 yr. fixed rate | 6.72 | ||
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Ana Connell 818.795.8474
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