In case you missed some of the recent housing news, we’ve got you covered!
FOMC Adjusting Rates after Hurricanes
Following the recent hurricanes, the Federal Open Market Committee (FOMC) is closely monitoring economic activity. Here’s what you need to know:
- Hurricanes Harvey, Irma, and Maria have harmed many communities, affecting their economies in the short term.
- The FOMC predicts inflation may increase in the short-term but should be near 2% for the 12-month timeframe.
- The Committee chose to maintain the target range of federal fund rates at 1% to 1.25%.
Have Home Prices Peaked?
With high demand and low inventory, home prices have been on the rise. New reports find they could have hit their limit:
- Home prices peaked this past March; since then, price gains have been declining monthly. July’s price gain, against last year’s, stabilized at 6.2%.
- The jump in millennial home buyers may also be a link to this trend. As new home owners, one of their biggest needs in a home is affordability.
- Although we are still in a competitive market, we may finally see a decline in bidding wars.
Higher Mortgage Rates Aren’t Stopping Buyers
For the first time in 7 weeks, the average 30-year fixed mortgage rates increased from an average of 3.78% to 3.83%.
- Although rates have gone up, they’re still at a historic low. Freddie’s average rate was 8.1% in the year 2000.
- This hike in mortgage rates is the 5th one since December of 2015.