“Jobs week” (JOLTs, ADP, Challenger etc.) has so far delivered a very consistent message – hiring is slowing and layoffs are rising. We know that rate cuts will start on September 18. Will we get a 25 or 50 basis points?
Mortgage rates much lower
With increasing signs that the jobs market is weakening, bond prices rose, sending bond yields (and mortgage rates) lower. The average 30-yr mortgage rate is now 6.33%, the lowest since April 2023 and down 110 basis points (1.1%) in the last four months. Affordability is rising, are you getting closer to making a move?
Jobs growth slows sharply
According to payroll processor ADP, private employers added just 99,000 jobs in August, far below expectations of +145,000, and the lowest figure since January 2021. This followed weaker-than-expected job openings from the JOLTs report. The jobs market is clearly weakening as we move closer the Fed’s Sept 18 meeting and the first rate cut. [Source: ADP & BLS]
The down low
One of the most persistent myths in homebuying is that you need to come up with a 20% down payment to get a mortgage. NOT TRUE. The average down payment made by recent first-time buyers was just 8%, and there are programs for eligible applicants (VA, USDA etc.) with much lower minimum down payments.
Local Market Trends
As of Friday, September 6, 2024
| Area | Median Price | Active Listings | New Listings – 5 days | Median Days on Market |
|---|---|---|---|---|
| Scottsdale, AZ |
$980,000
-0.2%
|
1749
0.2%
|
155 |
66
0%
|
| Gilbert, AZ |
$648,901
0%
|
599
0.1%
|
60 |
42
-0.2%
|
| Phoenix, AZ |
$478,500
-0.1%
|
3126
-0.1%
|
251 |
46
-0.1%
|
| Paradise Valley, AZ |
$4,900,000
0%
|
155
0.1%
|
18 |
83
-0.2%
|
/
) from Aug. to Sep. 2024.
