Weekly Market Update June 19 - June 23
For the month of June, it seems like the rates have been going sideways – basically nowhere. There is some overhead resistance, but I’m estimating there will be a drop in rates coming up in the next 6 months.
Looking at our inflation graph, we can see that the producer price is much lower than the consumer price. As inflation goes down, our rates will come down.
The median age for a homebuyer is 34. However, there are a ton of up-and-coming homebuyers. With 50 million people (about twice the population of Texas) between the ages of 28-38, the population of homebuyers is huge and continuing to grow.
Why do we emphasize that?
Well, we’ve been saying all along that we don’t see a bubble in real estate. Select markets like San Fransico have seen double digit drops, but nationwide we are still expecting another 6% appreciation this year.
With this future influx of homebuying demand, current housing is going up to match the supply.
What about the builders?
They’re feeling great about current and future expansion! Things are happening. While interest rates are rising, there is a dramatic shortage in the housing industry making it a great time to buy.
Remember, if a potato can become vodka, you can become a homeowner. Learn how with Mortgage Mark today!