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This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Market Commentary
Mortgage rates have remained fairly flat for the week.
Yesterday, the U.S. Bureau of Labor Statistics released the October Consumer Price Index (CPI), a key measure of inflation. The report showed that inflation has followed expectations, meaning the Federal Reserve will likely cut the federal funds rate again at its December meeting. Even so, mortgage rates will probably remain high due to speculation and volatility until Trump becomes president and policies are implemented. As far as interest rates go, today could be as good a time as any to buy in the next few months.
Fed Watch: Target rate (in bps) possibilities, according to the CME Group (as of 11/14/2024 – 12:30 PM EST):
Market Review: Optimal Blue's Production Metrics:
Consumer Confidence
Pre-election, consumer sentiment rose slightly. However, sentiment among the middle class slid, as did sentiment among the prime breadwinning 35–54-year-olds. Moreover, median wage growth expectations through 10/25 were very weak. Yet 60% of households think the bull market will rage on for at least another year, and expectations of improved personal finances in one year rose substantially. It's the mercurial stock market, not the bread-and-butter economy that's driving sentiment. - Elliot Eisenberg, Ph.D. , Economist
News You Can Use
- Consumers Feeling Better About Housing Market Despite High Home Prices
- You need to make $108,000 to afford a home in America
- Fed's Barkin: Economy and policy are in a good place
- Fed's Kashkari says he's confident inflation is headed down
- Housing Costs Continue to Drive Inflation
- Jobless claims fall to lowest level since May
- CPI inflation sparks Fed interest rate cut bets
- Here's where economists think the housing market is headed
*Communication is intended for Industry Professionals only and not intended for Consumer Distribution
Interest rate and annual percentage rate (APR) are based on current market conditions as of 11/14/2024, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 11/14/2024 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
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