Mortgage Watch | July 15, 2019

NAR Chief Economist sees promise in housing market

A a recent report by National Association of Realtors’ Chief Economist Danielle Hale details how and why the housing market is looking more promising over the next few months. “I don’t think we’ll get back all the way to…the frenzy we saw at the beginning of 2018,” she says. “But it’s certainly a possibility that home sales and prices will pick up, especially if mortgage rates stay low.”

When mortgage rates are at historical lows, the market tends to heat up, offering a tangible incentive for people to buy. Freddie Mac’s latest mortgage rate survey revealed those historical lows recently. “We’re seeing a tug of war happen as the fixed income market flashes warning signs while the equities market continues to march higher with optimism,” Sam Khater, Freddie Mac’s Chief Economist, said. “The data suggests the economy is weakening but is still on very solid ground with high consumer confidence and a strong labor market. Closer to home, the housing market continues to slowly improve and gain momentum as we head into the second half of the year, which is good news and should keep the economy growing.”

Realtor.com’s Clare Trapasso reported that said that the report also indicates that a number of homes for sale are expected to decline again over the next few months because the growth in inventory is starting to slow, slipping from 2.9% annual growth in May to 2.8% in June. “We’re not seeing as many new listings come up on the market,” Hale said. That could be because homeowners looking to trade up to bigger, nicer residences can’t find anything in their price range. It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we’ve ever seen.”

Source: NAR, Realtor, TheMReport, TBWS

 

 

Rates Currently Trending: Neutral

Mortgage rates are trending sideways so far today. Last week the MBS market worsened by -20bps. This was enough to worsen rates or fees. Last week we saw a good deal of volatility and we are likely to see the same this week.

 

About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 43 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and son Matt, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 23 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, as well as sponsors Paper Shredding and E-Waste Recycling events twice a year.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.