Upcoming Fed Decisions
Stagnant economy, falling home sales, and "trigger leads" controversy precede upcoming Fed decisions.
⭐️ Check This Out
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Builders are tiptoeing on the optimism tightrope in April, as limited resale inventory boosts new home demand, but pesky building material issues just won't let them enjoy the party.
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U.S. single-family rent prices hit the brakes in February, slowing down to 5% growth, as renters seem to be on the hunt for more budget-friendly neighborhoods.
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Mortgage brokers are cheering for new legislation to ban trigger leads, while credit bureaus claim it would limit consumer choice—nothing like a good old-fashioned legislative tug-of-war.
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The FHA is increasing the maximum term for mortgage modifications to 40 years to protect borrowers against default, aligning with Fannie Mae's and Freddie Mac's options. A forever mortgage for your forever home?
📊 Market Update
Last week was so boring that even the economy took a break. Mortgage rates barely budged, and a swath of folks are still not selling their homes. Builders are trying to save the day by making more homes to increase supply, but mortgage rates are still keeping most of the buyer traffic at bay.
Home Sales
In March, home sales tripped and fell 2% compared to February, with a 22% drop from last year. The number of homes available was better than last year, but still far from perfect. House prices dropped a bit, but mortgage rates more than doubled, so it appears that everyone’s staying in their cozy homes.
The busy Summer moving season is around the corner, so expect both the supply of listings and buyers entering the market to rise accordingly.
Upcoming Fed Meeting
On May 3rd, the Fed decides the next rate adjustment. The market is predicting nearly a 90% chance of another 25 basis point increase, according to the popular Fedwatch Tool.
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😄 If the Fed decides to pause (surprise!), I expect mortgage rates to drop.
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😒 If the Fed raises by 25 basis points as planned, I expect no major changes in rates.
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😠 Hold on to your hats if the Fed raises by 50 basis points. I expect rates to rise sharply if this were to happen.
Trigger Leads in the Spotlight
"Trigger leads" are causing quite a stir in the mortgage world, and now there's legislation to ban them. When you innocently apply for a mortgage, credit bureaus decide it's the perfect time to sell your information to other lenders. The result? A never-ending stream of phone calls and offers you never asked for.
Some people think this is just fantastic for consumer choice, while others, like Rep. Ritchie Torres (D-NY), want to put a stop to it. Mortgage brokers are practically throwing a party over the potential ban, but credit bureaus argue it would limit options for borrowers. It's a showdown between more choices and less spam.
Meanwhile, consumers can try to protect themselves by signing up for the National Do Not Call Registry and other services to keep those pesky lenders at bay.
🗓️ Economic Calendar
Tuesday
- New Home Sales - measures the annualized number of new single-family homes that were sold during the previous month.
Thursday
- GDP - measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy.
Friday
- Core PCE - measure of the PCE price index which excludes the more volatile and seasonal food and energy prices.