The Bluebid Buzz is a regular summary of housing market news and data driving our decision-making at Bluebid Homes.
Here's the Buzz for the week of December 14, 2023…
The Federal Reserve announced its third consecutive rate hike pause yesterday, and Fed Chairman Jerome Powell says he expects rate cuts in 2024. CBS News explains why the interest rate pause is good news for homebuyers - and why cuts will be even better.
Mortgage News Daily observes 30-year fixed rates at the lowest levels since May, as daily average mortgage rates have fallen to 6.82%. This marks the first time daily rates have fallen below 7% since July.
While home prices are still high and supply remains constrained, falling rates are having an impact. CNBC reports mortgage refinance demand increased 19% last week and mortgage applications - an early indicator of true demand - jumped 4%.
According to Newsweek, Goldman Sachs expects home prices to grow by 0.6% in 2024, 3.8% in 2025, and 4.9% in 2026. Preliminary data suggests prices grew 3.5% this year.
Realtor.com is already offering its postmortem on the 2023 housing market, and the real estate technology company calls it the year the housing market froze over.
Rates dominate headlines, but they're only one factor in the "lock-in effect" blanketing today's housing market. As explained by MReport, low inventory compounds the problem. That's why our team is dedicated to building a more sustainable pipeline of supply - and we're rapidly approaching 3,000 homes you won't find on traditional listing services.
Have a great week.
Disclaimer: Views expressed here are my own and not the views of my coworkers or anyone else. I am not a financial advisor, investment advisor, or housing expert. I’m just a guy who cares deeply about saving the American Dream of homeownership.