NAR Chief Economist Lawrence Yun reacts to the jobs report by saying the weakening job market should assure several rounds of short-term interest rate cuts by the Fed in the upcoming months.
All the layoffs did that not cause a higher deficit by all the payoffs to these individuals taking packages. It’s amazing to have numbers fixed and adjusted. So the 2% inflation point is now being overlooked. Now at 2.5? Mortgage rates dropping to 5% will be beneficial. Cannot go back to pandemic special of 2.75% will not help the imbalance of supply n demand. Need to lower insurances n cost of living. Be true to the real world.
This doesn't assure anything. You are really misleading people and should soften your language to say that you think that is what will happen. In addition, the #1 problem with the housing market is low inventory, not higher rates, something that you fail to mention here. Inventory was extremely low before interest rates went up. Without more new construction, and construction for affordable homes not outrageously large and expensive homes, nothing is going to change in real estate. Supply is the issue not demand.
More jobs, lower home prices and softening interest rates. Sounds like we may be seeing another rush soon which could lead to higher prices again.
Look at the cost to build a home or any building. Lumber, oil based products (ie Pex, flooring, paint), metal products copper, appliances, and a lot of other building items are all twice the cost of 10 years ago. Tariffs are adding to already high costs. The inflationary pressure will not be reduced and inflated costs will not be retracted. They never are reduced unless there is a deep recession which would be damaging. Here in Phoenix, builders are not building small homes or more affordable homes. They aren't profitable to build and the demand for bigger homes is insatiable. Starter homes are not available so people rent apartments. Even the cost of renting reflects the high cost of building. Renters are spending 40 to 50 percent of their income on rent. Sedona, AZ is building lost cost small homes for workers in the tourism industry. I suppose this is form of government subsidy. Not a good approach, but only one available to this community. Phoenix is converting older motels and hotels into low cost living units. Again government subsidized. What are your thoughts from the real estate community? Habitat for Humanity can't fill the market.
Would really like to see more support from our lobbying efforts to fix the capital gains tax disparity. In addition a new bill/proposal for tax credits for people either building or buying into 55+ or senior communities would really help fuel the RE market tremendously on so many levels.
Prices won’t come down in the really in demand areas. Most people are staying unless you think they’ll be sub 3 percent rates again? If not, see you in 2045 when it’s time to move to the farm…
Using words like 'slashing' and 'falling' certainly doesn't represent the slight reduction in rates. Also, can we PLEASE get past referencing Covid as a benchmark? Three times in one statement is a bit much. It's 2025.
Every market is different, I'm not sure we have a shortage of homes, or buyers, what we do have is a shortage of confidence in the rates so buyers feel better about jumping into a mortgage. I've had more buyers decide to continue Renting because of the Rates and Sellers not wanting their homes to sit for any length of time and having to keep it SHOW ready for months because the Buyers aren't willing to jump in.
This needs to happen!
National Association of REALTORS® The bond market, not the Fed, drives mortgage rates. Specifically, it’s the yield on the 10-year Treasury that sets the direction, and the spread between the 10-year yield and mortgage rates widens when there’s economic or policy uncertainty. Right now, that spread is being kept elevated by uncertainty around U.S. fiscal and economic policy, not just job numbers. Painting this as a guaranteed rate-cut path is misleading. Our clients need clarity, not spin, and pretending lower rates are a sure thing risks giving buyers and sellers false confidence. Advisors should focus on helping consumers control what they can, strategy, timing, and leverage, instead of waiting for the Fed to save the market.