Market Confusion: Don’t Panic!
The mortgage/housing markets are all kinds of confused. So let us break this down and get to the bottom of this. In housing, home prices have yet again hit an all time high for like the 20th month in a row. Yet, all the talk is about sales slowing down. So is it a good market to buy or a bad market to buy? First, you always want to buy into an appreciating market and all second half predictions have values continuing their ascent. Second, when homes were going under contract in 4 hours and now its at 4 days, that’s not slowing, that’s just throttling down from Ludacris speed to light speed. This could be a better market today than just 3 months ago. In mortgage, the FED is mulling over a 100 basis point rate hike next week, yet we’ve seen rates come down this month. So if this historic hike happens, rates are going to skyrocket, right? Not so fast my friend. The FED doesn’t directly impact mortgage rates and barring a crazy inflation reading in August, we should see rates remain stable over the next few months. The more you know the better you can position yourself.