A recession won’t help you buy a house. Mortgage rates increased slightly from last week but generally held steady with 30-year rates now at 3.58% and 15-year rates at 3.06%. The National Association of Realtors reported a 2.5% decrease in pending home sales in July.
Freddie Mac – “Mortgage Rates Generally Hold Steady” (8-29-2019)
“Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) rate averaged 3.58 percent, a slight increase from last week.”
HousingWire – “Second Quarter GDP revised down to 2%, half the pace of a year ago” (8-29-2019)
“Reflects downward changes to residential investment, government spending, and exports.”
Realtor.com – “As Interest Rates Plummet, Should You Refinance Now?” (8-29-2019)
“As mortgage interest rates continue to drop to record lows, many homeowners are wondering: Should they refinance their mortgage right now?”
Mortgage Bankers Association – “Mortgage Production Profits Rise in Second Quarter of 2019 to Highest Since 2016” (8-29-2019)
“Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a net gain of $1,675 on each loan they originated in the second quarter of 2019, up from a reported gain of $285 per loan in the first quarter of 2019, according to the Mortgage Bankers Association’s (MBA) newly released Quarterly Mortgage Bankers Performance Report.”
National Association of Realtors – “Pending Home Sales Decline 2.5% in July” (8-29-2019)
“Pending home sales fell in July, reversing course on two consecutive months of gains, according to the National Association of Realtors. Of the four major regions, each reported a drop in contract activity, although the greatest decline came in the West.”
Forbes – “The Fed Cut Rates. What Does This Mean For Real Estate Investors?” (8-29-2019)
“Recently, Federal Reserve Chairman Jerome Powell announced a 0.25% reduction in benchmark interest rates.”
Curbed – “Sorry, millennials: A recession won’t help you buy a house” (8-29-2019)
“The 2008 recession yielded housing bargains in subsequent years. Curbed’s data reporter explains why that won’t be the case for the next one.”
CNN – “Pending home sales are down sharply on economic uncertainty” (8-29-2019)
“Americans have been reluctant to buy homes lately, thanks to uncertainty about the US economy. Now their fears are showing up in the data.”
Bruce Norris will be presenting his latest talk 10 Decisions To Make Before The Next Downturn with SDIC on Thursday, September 5.
Bruce Norris will be presenting his latest talk 10 Decisions To Make Before The Next Downturn with SJREI on Thursday, September 12.
Bruce Norris will be presenting Cashing In On A Boom: Creating Value In A Tight Market on Saturday, September 14.
Recessions fears rising. The National Association of Realtors reported a 0.7% decrease in pending home sales for July. There are 4 specific “improvements” you could make to your home that surprisingly don’t add any value. What could they be?