Fed Chairman Jerome Powell’s Jackson Hole speech last Friday made it very clear that two things are rising: 1) confidence that inflation is heading towards the Fed’s 2% target, and 2) concern that the unemployment rate is rising too quickly. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data.” [Source: Federal Reserve]
Affordability improving
Average 30-year mortgage rates have dropped more than 1% in the last 4 months – shaving $200-$300 off the typical monthly mortgage payment. And with the Fed set to start cutting rates on Sept 18, mortgage rates are likely to fall further. If you’ve been thinking about making a move, it’s time to get organized, set a budget, and get a professional (me!) working for you.
Home price growth slowing
The seasonally-adjusted Case-Shiller national home price index for June rose 0.2% month-over-month, a slowdown from +0.3% in each of the previous three months and +0.5% in Jan and Feb. That said, national prices are already up 2% year-to-date. Four of the big city indexes saw MoM declines in June: Charlotte, Dallas, Phoenix and Portland. [Source: S&P Global]
