Recapping the big real estate stories for the week ending 7-15-2013 and looking at reports from NAR and FNC regarding home prices and inventory…
Happy Monday to you! Hope that you had an awesome weekend. Since it is Monday, let’s recap the big news for real estate last week and look at some of the upcoming stuff you need to be aware of
FOMC Meeting Minutes Released
Last week we finally got the much anticipated minutes for the June FOMC meeting.
Important subject so please allow me to write about it again. Everyone was looking for any hints regarding the Federal Reserve following through with their hints about starting to taper Quantitative Easing. Like I said before, this will have a BIG effect on mortgage rates. Heck, after the Fed just mentioned tapering QE we saw mortgage rates spike.
About half of the members want to end the current quantitative easing (QE) policy by the end of this year. However the other half wants to end the program in 2014. All I can say is that QE will end at some point in the near future. Maybe this year or maybe next.
The good news is that whenever the Fed does stop buying $85 billion in Treasury securities and mortgage-backed securities every month, they won’t start selling their stockpile of MBS at the same time. When the Fed doe start selling their MBS we can expect that mortgage rates will increase because demand for bonds will decline.
Watch and Wait
I guess we can be glad that the financial markets didn’t go nuts after the Fed minutes. Maybe Wall Street is finally accepting that QE is going to end some time. And we can be glad that Chairman Ben Bernanke’s didn’t say anything during his press conference that would have caused panic. For now it appears that there are not any big changes because the Fed is going to play the watch and wait game.
To recap last week’s Mortgage Rate Update, both the Mortgage Bankers Association and Freddie Mac reported that rates increased. Certainly something that buyers need to be aware of. The one good thing is that mortgage rates are still super low!
Number of Homes for Sale Up
Earlier today, NAR released a report saying that the number of homes for sale has increased to the highest level in a year. Of course they are talking about the entire US. You really have to have look locally to get the data that is relevant for you. There is no doubt that reports about the US housing market shape consumer’s views though.
Home Prices Up
Yet another report saying home prices are going up: FNC says US Home Price Up 0.5%. Again, reports such as this help to shape consumer perceptions.
Tomorrow we need to watch for the latest NAHB/Wells Fargo Housing Market Index. Another national report but a biggie for both the economy and real estate.
Then on Wednesday, we can look forward to the report on Housing Starts for June.Which should might us more insight into why the NAHB/Wells Fargo HMI is what it is…