Lisa Mailhot | September 4, 2024
Buyers
The recent report by the Commerce Department’s Bureau of Economic Analysis highlighted a continuing yet moderate cooling in inflation with the Personal Consumption Expenditures (PCE) price index rising by 2.5% year-over-year in July. This figure stands slightly above the Federal Reserve's target of 2%, signaling a nuanced approach to economic management moving forward.
Diane Swonk from KPMG U.S. explains, "The base effects will continue to influence year-over-year inflation measures strongly through the end of this year." This steady yet slow pace suggests that the Federal Reserve may opt for a minimal rate cut in September, possibly adjusting the federal funds rate by only 25 basis points.
Following the Fed’s policy direction, mortgage rates have shown fluctuations. After reaching a high in April, rates have somewhat stabilized but remain sensitive to new economic data. This volatility underscores the intricate connection between broader economic policies and the specific impacts on mortgage rates.
On August 25, Optimal Blue data revealed a notable decrease in mortgage rates, which dipped to a new low for the year. This change is closely tied to the investor's expectations of future rate cuts, affecting both home buying affordability and the investment landscape in real estate.
Federal Reserve Chairman Jay Powell, in his recent Jackson Hole speech, emphasized the delicate balance the Fed seeks to maintain: fostering economic stability while preventing significant disruptions in the labor market. This approach suggests a cautious but proactive strategy in adjusting monetary policies.
As we observe these financial adjustments, it’s essential for both buyers and sellers to stay informed about how these changes could affect their real estate decisions. If you're considering making a move in the dynamic markets of Orange County or beyond, let's connect to navigate these financial landscapes together.
Explore three crucial strategies wealth managers must adopt to prepare for significant industry shifts, including the integration of technology, recruitment of new adv… Read more
Homebuilder stocks surge as Kamala Harris proposes housing reforms and the Federal Reserve hints at rate cuts. Discover how these factors could reshape the real estate… Read more
Explore the latest insights from July's inflation data and its subtle impact on future mortgage rates. This article delves into the PCE price index, Federal Reserve st… Read more
Explore the staggering monthly costs associated with maintaining a celebrity mansion, as revealed by Jennifer Lopez and Ben Affleck’s recent real estate troubles. Lear… Read more
Explore the escalating legal battle as the National Association of Realtors (NAR) prepares to take its confrontation with the Department of Justice (DOJ) over alleged … Read more
Explore the differences between incentive and protective trusts to safeguard your wealth and support your heirs. Learn how each trust type can influence the next gener… Read more
Governor Newsom signs two bills expanding housing options in California. Learn how AB 2835 and AB 3057 aim to address homelessness and increase affordable living space… Read more
Homeowners and investors anticipating lower mortgage rates after the Fed cuts interest rates may have to wait. Learn why longer-term Treasury yields are a better indic… Read more
Discover the groundbreaking antitrust lawsuit filed by Homie against the National Association of Realtors and key industry players, alleging conspiracies to stifle inn… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most