|The biggest issue with the housing market over the past couple of years is that it has been heavily slanted towards a “sellers’ market with very low and in some cases, no inventory available in many areas of the country.
But, could this be the start of some relief for those that have been looking to buy a home? A recent survey by the National Association of Realtors showed that more and more homeowners think now is a good time to sell.
The survey found that 77% of Americans think now is a good time to sell. Half of the respondents strongly believe now is a good time to sell, up from a 46% share in the second quarter, while 27% moderately believe this is the right time, down from 29% last quarter.
Homeowners in the West (85%) and those who currently own a home (82%) were most likely to have the sentiment. Only 22% believe that now is not a good time to sell, down from 29% in the previous quarter.
NAR Chief Economist Lawrence Yun said several consecutive years of strong home price growth are enticing homeowners to consider selling.
“Though the vast majority of consumers believe home prices will continue to increase or hold steady, they understand the days of easy, fast gains could be coming to an end. Therefore, more are indicating that it is a good time to sell, which is a healthy shift in the market,” he said.
What Happened to Rates Last Week?
|Mortgage backed securities (FNMA 4.50 MBS) lost -75 basis points (BPS) from last Friday’s close which caused fixed mortgage rates to move higher for the week, they also reached their highest levels in over 7 years.
Overview: Mortgage backed securities sold off (higher rates) due to a very “hawkish” tone from the Fed, very strong economic data (ISM Services) and very strong Jobs data – even with weather related (hurricane) headwinds.
Jobs, Jobs, Jobs:
In a separate report, the September ADP Private Payrolls Employment Report showed a surge of 230K new jobs which beat out forecasts of 185K. August was revised higher from 163K to 168K.
Fed Chair Jerome Powell spoke just one week after the Federal Reserve raised their Fed Funds Rate. He spoke at the 60th Annual National Association for Business Economics Annual Meeting in Boston.
ISM Services: Can we say “blockbuster“? The September reading hit its highest level in 20 years!!! This report represents MORE than 2/3 of our economic engine.
What to Watch Out For This Week:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.