With the Federal Reserve announcing late January that interest rates will increase around mid-March, many homebuyers are scrambling to find their home.
First, a little background on recent turns in the U.S. Economy:
- despite global inflation, the U.S. continues to feel the biggest pinch
- but the U.S. economy rose by 6.9% which is the highest increase in its GDP in 40 years!
- and the Jobs Market reported that 260,000 less people filed for unemployment claims
The latter two statistics are positive economic markers, but the key charges of the Federal Reserve are to keep inflation under control and Americans employed. "High inflation is a severe threat to the achievement of maximum employment" said Jerome Powell, Chair of the Federal Reserve during his Senate confirmation.
So when inflation rises, the Feds seek to slow down consumption and a way of achieving this is to increase interest rates.
Now observe that on January 22, 2022 according to Realtor.com, while total listings were down 28.4% and new listings were down 8.3%, median listing prices were up 11.7% and homes sold 10 days faster!
Coupled with a decrease in listings, rent prices have gone up 19.3% since last year. Hence, a housing shortage continues to dominate the market despite inflation and rising interest rates soon on the horizon.
Conclusion: at this time we still face low inventory and a strong demand for housing.
In case you missed this last month, here is how to lock into today's interest rates and the 6 steps to buying your home now:
- Find the Right Agent [HINT: That's Our Team :) ]
- Get Pre-qualified or Pre-approved [With Your Bank or Mortgage Lender]
- Preview Homes [We Can Do This Virtually or In Person]
- Negotiate [We Take Care of This for You!]
- Inspection and Appraisal [We'll be There Every Step of the Way]
- Closing [Let's Go Grab the Keys to Your New Home!!!]
Scroll down for fun community events for Mardi Gras, our Clients of the Month, plus learn new ways to declutter and organize your home with the latest in ideas, projects, and resources to address all of your home zones! REMEMBER: the more organized you are, the more time you have to enjoy your home!
Please let us know if we can help you find your next home, and/or sell the one you have.