Windermere’s Principal Economist Jeff Tucker analyzes the real estate market
Applications for purchase mortgages hit their highest level since July last week, and rates keep falling as weak jobs reports and more encouraging inflation data point to Sept. 17 Fed rate cut
Investors who fund most mortgages have already priced in several rate cuts, so further declines could depend on what next week's 'dot plot' says about expectations for the pace of future cuts
Investors see a September rate cut as a given, but the latest inflation data suggests recession fears are overblown and that the Fed will start out with a modest, 25-basis point reduction
The Federal Reserve's preferred inflation gauge fell to 2.56% in May, getting closer to the Fed's 2% target for the 2nd month in a row. Core inflation reading is lowest since March 2021
Key Fed inflation metric expected to drop June 28 following unexpected decline in May wholesale prices and jump in weekly jobless claims to 242K workers, highest level since August 2023
Mortgage rates rise for the fourth day in a row, pushing back through 7% as more worrisome inflation data puts to rest any lingering hopes for a Federal Reserve rate cut this spring
Acquiring construction materials remains expensive for homebuilders, even as a reduction in demand may be relieving supply chains, according to data from the US Bureau of Labor Statistics