3 Big Things: New Federal Chairman, Housing Inventory & Memorial Day

It is time for the three big things you need to know about the mortgage and real estate market right now! Today, we are covering a major update on the Federal Reserve, how climbing inventory is giving buyers the upper hand, and a special Memorial Weekend tribute.

Here is what you need to know.

1. New Fed Chair Kevin Warsh and Potential Rate Changes

Today is a very special day in the financial world. Our new Federal Reserve Chair, Kevin Warsh, was officially sworn in by President Trump.

A lot of people were expecting him to come in and immediately start slashing the Fed rate. However, we don’t know if that is actually going to happen. In fact, there is chatter that he could potentially have to raise rates instead of lowering them.

Why? Inflation. We are seeing inflation tick up due to the current oil crisis involving Iran and the closing of the Strait of Hormuz. However, I believe this is false, temporary inflation. If we can get that opened back up, inflation should drop right back down to 2%. How will this Fed announcement and inflation impact mortgage rates? I’d love to hear your thoughts on where you think rates are headed next.

2. Rising Inventory Gives Buyers the Upper Hand

The second big thing you need to know is that housing inventory is still climbing. This is great news if you are looking to purchase a home because it is putting buyers in a very strong position to negotiate.

If you are concerned about affordability, you can stop right now. We currently have programs with as little as zero money down for first-time homebuyers. To put things into perspective, let’s look back exactly 30 years to 1996. Back then, interest rates were around 7.5%, the average income was $10,600, and the average house cost about $26,000.

If you had bought a home back then, it would be worth around $450,000 today, and it would be completely paid off. On the other hand, if you had been dealing with rising rents consistently for the last 30 years—paying anywhere from $560 back then to $2,000 a month now—you would have spent almost $500,000 in rent with zero equity to show for it. Buying remains one of the best investments you can make.

If you’re ready to explore your options, consider attending an upcoming homebuying class to get started.

3. A Special Memorial Weekend Tribute

The third big thing is a tribute to Memorial Weekend. This is a time for us to pay tribute to all of our fallen soldiers who have fought for this great country. We live in the best country in the world, and there has never been one like it.

For those of you who don’t know my story, I was not born an American. I became an American citizen in 2008, and I am incredibly proud of it. I am so proud to fly our flag high. No matter what side of the political aisle you sit on, we have to stick together as a nation. Do not let politics tear us apart.

Take this time to remember all of the fallen soldiers who did so much to give us the great freedoms we enjoy today. We are getting ready to celebrate 250 years of freedom—that is something truly worth celebrating! Stand tall, be proud of the country we have, and always remember to be proud to be an American.

Ready to explore your home loan options?
Visit WeBringYouHome.com or reach out to our team today to get pre-approved and take advantage of the growing housing inventory!