3 Big Things: New Home Sales are down, Covid cases are up and rates…are staying put for now!

Hey, it’s Bruce at CrossCountry Mortgage. and it is time again for the three big things you need to know. You know, I always like to make sure that you my clients, future clients or past clients are always informed as to
what’s going on in the market. So a couple of really big things that are going on right now.
  1. First of all, it appears that new home sales are down, to the lowest in the last 14 months. Now, here’s the thing, I’m not scared with that. That is not a panic moment because they have to be down because builders can’t keep up with productivity and there’s not enough houses to go around. So they’re naturally going to be down from where they were 14 months ago, when we were at an all time high during Covid. Who would have thought, right?
  2. So second big thing you need to know, Covid is up. Okay, So that could put a hurt on being able to preview homes. Again, people starting to get a little bit concerned about who’s coming in and out of their homes plus Realtors having face to face meetings with people. Well, let’s see how that really pans out. My advice for all of you. Just get the vaccine. I know you may not like the idea of it. I know that it has been tested well enough. I don’t care. I’m telling you, I don’t have smallpox and I don’t have polio. Just get the vaccine and we’ll be done with this issue and we can move on with our lives. So I don’t have to hear the words Covid anymore. All right, That’s my opinion. Take it for what it’s worth. Okay.
  3. The third big thing you need to know. I love to keep you informed. But some of this information that I give tends to be esoteric for you. But if you are a geek and you like to know what’s going on in the economic indicators that are driving the market then pay close attention because this is big stuff. Okay, so bonds Are up right now, which is good for interest rates, they’re very good. But if we’re going to see another rate improvement at all, we have to move above the 200 day moving average on the bond market and we keep pumping up to it, we pop up to it, it drops back down. If we can break that ceiling of resistance, then we could see another little bit of an improvement and rates, but rates are really attractive right now. So if you are refinancing and you’re closing within the next 30 days or you’re buying a home and closing within the next 30 days, let’s get your rate locked in right now, they’re very attractive. If you’re outside of 30 days, maybe you’re new construction, you’re not closing for another two months, three months, six months, nine months. I don’t think you have anything to worry about. I think that our rates are going to stay pretty stable and if we can pop above that 200 day moving average, we could see a little bonus for us all. There’s some big economic news coming out next week. The Fed meets again next week. They met last week, there’s all kinds of things happening. So there is some quantitative easing going on with the central banks which is causing a little volatility. And volatility can be good. It can be bad. You know, it’s just, you never know how that’s gonna turn out. But the Fed does meet next week and there will be a Treasury auction, you know, they’re auctioning off $180 billion worth of mortgage backed securities. So that’s a big deal. The PCE comes out which is a big indicator in in the market. And last time it was not good for bonds when the people came out and was really a bummer and and drove bonds down. So that could be a big thing. So there is a lot of news happening that could affect interest rates positively positively or negatively. And I know I sound like a weatherman, you can’t tell what’s gonna really happen. But you have the information. I watched the market not daily but intra daily and you can count on me for accurate information. I don’t have a crystal ball but you will have the information and I watch it daily so that I can be a better true trusted advisor for you, my clients.

Thank you for listening to the three big things you need to know if I can help you in any way with buying or refinancing a home I’m always in, I look forward to hearing from you soon. Have a great weekend.

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