Trick or Treat!
Case Shiller, JOLTS, ADP, GDP, Pending home sales, PCE, initial and continuing jobless claims, October Jobs Report, and oh yeah, a small thing like the election next Tuesday that will determine the course and direction of the country all coming in this week through next Tuesday, it’s no wonder the markets are bouncing around trying to understand what to make of all the information and what the potential impacts it will have in the marketplace. The good news is, at some point in the next few weeks the dust will settle, and all the knee-jerk reactions will subside, and we will embrace the holiday season and the path that leads into 2025.
As professionals, you need to be paying attention to everything going on and realize that there is absolutely nothing you can do to change the information, only how you and your team react to it! This is both the “Trick” as well as the “Treat” for you this Halloween!
Here is what we know for sure, housing is still going to be in demand and the trend will be for home prices to continue to rise. We also know that at some point, the FED will continue to lower short-term interest rates and the long end of the market and make a slow move lower. The problem most people miss is a flawed strategy of saying, “I am going to wait until rates fall before buying”. The problem with that is twofold: THE TRICK!
- While you wait, the cost of the house will outpace your ability to save money on the rate drop. (an average $400K house appreciating at 4% annually rises at over $1,300 a month compounded each month)
- Once people think rates are where they like, they will hit the market looking to buy, thus pushing prices even higher faster!
So here comes the TREAT!
- Buy the house today when you have a great selection of inventory and less competition.
- Now that you have “locked in” the price of the house, when the time comes when you choose the market has fallen to the point you are now happy with the rate market, REFINANCE!
BONUS TREAT! If the interest rate market NEVER falls and rates push higher and higher; YOU OWN YOUR HOME AT A GREAT PRICE AND A GREAT RATE! As always, if you have questions or comments: [email protected]
