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Instant Reaction: Jobs, September 6, 2024

jack watts • December 13, 2024

The net monthly job addition averaged 116,000 from 3 months to August. That is light. It even suggests the possibility of turning net negative in the upcoming months if the economy hits an unexpected speed bump. The softening job figures suggest that the Federal Reserve will cut interest rates in mid-September, again on the day after the election, and possibly four more times in 2025. The long-term bond and mortgage markets have already incorporated these upcoming changes. That is why the average mortgage rate is 6.3%, measurably lower than the 7% to 8% seen in the past 18 months. Mortgages with full government guarantees, like FHA and VA loans, are already below 6%.


Read more about Lawrence Yun's take here:

https://www.nar.realtor/blogs/economists-outlook/instant-reaction-jobs-september-6-2024

Instant Reaction: Mortgage Rates, September 5, 2024

By jack watts • December 13, 2024
Facts: The average 30-year fixed mortgage rate from Freddie Mac remained unchanged at 6.35% this week from last week. At 6.35%, with 20% down, a monthly mortgage payment on a home with a price of $400,000 is $1,991. With 10% down, the typical payment would be $2,240. Read more about Jessica Lautz's take here: https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-september-5-2024

HMDA and Housing Demand

By jack watts • December 13, 2024
The Home Mortgage Disclosure Act (HMDA) provides detailed information on mortgage lending activity, offering valuable insight into housing demand. Data on the number of loan applications can indicate whether housing demand is strong or weak, while approval rates reflect individuals' and families' ability to secure financing. Additional information, such as interest rates, income distribution, and property values, can paint a picture of the local economy. Read more about Anat Nusinovich's take here: https://www.nar.realtor/blogs/economists-outlook/hmda-and-housing-demand
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