08/29/2024
And here are your Market Updates for 08/29/2014
Key Market Highlights:
Apartment List National Rent Report: New rents fell by 0.1% in August, continuing the trend of declining rent prices. With higher national vacancy rates and ongoing multifamily construction, we can expect rental price growth to remain subdued, which might push more renters toward homeownership.
Q2 GDP Growth: The economy grew by 3% in Q2, beating expectations. With strong consumer spending and lower-than-expected inflation, there’s an optimistic outlook for continued economic strength. This presents an opportunity to market the stability and potential of home investments in a growing economy.
Real Estate Market Activity:
Home Sales: Despite slight improvements, home sales are still sluggish, with existing home sales in July rising only 1.3% compared to June. However, sales are down 2.5% year-over-year. Affordability remains a significant challenge due to rising home prices, which increased by 4.2% year-over-year in July. This may be important for your team to address when discussing financing options with potential buyers, as many may be hesitant to commit due to high prices.
Buyer Interest: Although overall sales are down, there is a notable increase in buyer interest. Redfin reported a 9% increase in home tours since the beginning of the year, indicating that while buyers are cautious, they are actively exploring the market. Your team could leverage this interest by staying engaged with potential buyers and helping them navigate current market conditions.
Jobless Claims:
Initial Jobless Claims have decreased slightly to 231,000, indicating some stability in new unemployment filings.
Continuing Claims rose by 13,000 to 1.868 million, marking the highest level since November 2021. This highlights ongoing weakness in the labor market, which could impact consumer confidence and borrowing behavior.
Technical Analysis:
Mortgage Bonds are trading near the lower bound of their current range, with support at 100.79 and resistance at 101.18. There’s still 8 basis points of room before bonds hit the floor, suggesting potential volatility.
The 10-year yield is currently higher, positioned between support at 3.80% and resistance at 3.92%. Tomorrow's PCE inflation report could be a key driver in determining if yields move lower.
Action Plan: Given the current market conditions, keep an eye on the PCE inflation report tomorrow, as it could positively impact pricing. We will have to wait and see.
