The Real Estate Show

Radio Show Notes 07/17/24 Wednesday:

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The Real Estate Show Blog Post: Wednesday Midweek Mortgage & Market Report Edition

By Eric Willner, Host of The Real Estate Show, America’s longest running daily radio show about real estate.

Have the news, media, and economy got you wondering if now is a good time to be buying or selling real estate?

Welcome to The Real Estate Show – South Florida’s #1 Real Estate Radio Show and America’s longest-running daily radio show about real estate. My name is Eric Willner, known as the Voice of Real Estate and founder of this historic program. I'm also the creator of The Automatic Landlord System for Owning Cash Flowing Real Estate “Profitably and Hassle-Free.” This show is a virtual real estate seminar in every episode and the only radio show that puts money in your pocket!

Today is the Wednesday Midweek Mortgage & Market Report Edition of The Real Estate Show, and we’re continuing to discuss why NOW is the right time to buy real estate using the theme: Real Estate Success: Step 1 in A Step-by-Step Guide to Buying Real Estate.

Did you know? Understanding the current market trends and mortgage rates is the first critical step to real estate success. Today’s show is all about Real Estate Success: Step 1 in A Step-by-Step Guide to Buying Real Estate, and how crucial it is to have a plan that leads to success in real estate.

Before we dive into today’s topic, let me remind you of this week’s special FREE Workshops:

1. Tuesday 8pm Path To Home Ownership Introduction – Online by Invitation. Text Home
2. Wednesday night 8:30pm Financial Edge University “101 Overview” – Online by Invitation Text Edge

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Let's continue discussing why NOW is the time to buy real estate, using insights from our previous shows on Monday and Tuesday. Today, we’ll focus on recent headlines and news articles that affect wealth through affordable housing, helping you gain independence and peace of mind. Understanding the news helps you get organized and have a financial edge.

Here are the top trending topics for today’s update:

1. Mortgage Refinance Demand Jumps to a 2-Year High as Interest Rates Drop Today's national 30-year mortgage interest rate trends are promising. On Wednesday, July 17, 2024, the current average interest rate for the benchmark 30-year fixed mortgage is 6.86%, decreasing 12 basis points from a week ago. If you're in the market for a mortgage refinance, today's average 30-year refinance interest rate is 6.87%, decreasing 11 basis points over the last seven days. The national 15-year refinance interest rate is 6.43%, down 10 basis points over the last week. The consensus is that mortgage rates will ease down in 2024.

Applications to refinance a home loan jumped 15% last week compared with the previous week, reaching the highest level since August 2022. This spike in demand was driven by the drop in mortgage rates to the lowest level since March last week. While the increase is significant, it comes off a very small base, with refinance demand still over 70% lower than early 2020 levels before the COVID-19 pandemic.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.87% from 7.00%, with points dropping to 0.57 from 0.60 for loans with a 20% down payment. Joel Kan, MBA’s vice president and deputy chief economist, noted that recent signs of cooling inflation and the increased likelihood of Fed rate cuts later this year pulled mortgage rates lower.

On the other hand, applications for a mortgage to purchase a home fell 3% for the week and were 14% lower than the same week one year ago. Buyers today face a lean and pricey market, and with the expectation that rates could drop even more, many are waiting on the sidelines for a better opportunity. More supply is slowly coming onto the market, and sellers are starting to reduce prices, especially for homes that have been sitting for a while.

Call to Action: For more information and to get your financial edge, text the word EDGE to 561-861-2366.

2. Inflation Breakdown for June 2024 Inflation fell further in June as lower gasoline prices combined with other easing price pressures to bring relief for consumers’ wallets. The consumer price index (CPI) rose 3% in June from a year ago, down from 3.3% in May. This decline in the inflation rate from its 9.1% pandemic-era peak in 2022 has brought significant relief to households for staples such as groceries and gasoline.

The CPI gauges how fast prices are changing across the U.S. economy, measuring everything from fruits and vegetables to haircuts, concert tickets, and household appliances. The most encouraging news is that inflation for household necessities has cooled dramatically. According to Mark Zandi, chief economist at Moody’s Analytics, prices for staples like food at home, gasoline, and new-lease rents haven’t changed in about a year.

Gasoline played a large role in June’s inflation pullback, with prices falling 3.8% in June relative to May. Tepid gasoline demand, increasing supply, and falling oil costs have led to weaker gas prices. Average U.S. pump prices fell to $3.48 a gallon as of July 1, down from $3.52 on June 3.

The U.S. Federal Reserve uses inflation data to help guide its interest rate policy. It raised interest rates to their highest level in 23 years during the COVID-19 pandemic era to tame inflation. Last month, Fed officials forecasted they would start cutting rates by the end of 2024. All indications suggest that inflation has moderated and is back close to the Fed’s target, consistent with a rate cut in September.

While annual data on inflation trends is helpful, economists generally recommend looking at monthly numbers for a better guide to short-term movements and prevailing trends. The monthly core CPI reading was 0.1% in June, the smallest increase in about three years. Housing, the largest component of core CPI, has moderated much slower than expected, but monthly shelter inflation dropped to 0.2%, the smallest gain since August 2021.

Call to Action: Stay informed and gain your financial edge by texting EDGE to 561-861-2366.

Understanding these trends is crucial for anyone considering buying or selling real estate. With mortgage rates showing signs of easing and inflation cooling, now is a strategic time to act. Make sure to attend our free workshops this week to get a deeper understanding and equip yourself with the knowledge to navigate the current market successfully.

Conclusion Real estate success starts with understanding the market, and today’s insights into mortgage rates and inflation are critical steps in your journey. Remember, whether you’re a first-time homebuyer or an experienced investor, staying informed and having a solid financial plan is essential. Join us next time on The Real Estate Show for more tips and strategies to help you achieve real estate success.

Thank you for tuning in to The Real Estate Show, where every episode is a virtual seminar designed to put money in your pocket. Until next time, happy investing!