Real Estate News 02/05/2024

Today’s News Synopsis:

Already, 30-year mortgage rates have fallen from recent highs. While they reached approximately 8% in October 2023, they now average 6.63% as of the beginning of February 2024, according to Freddie Mac.

In The News:

CBS News – “‘Will mortgage rates drop below 6% in 2024? Here’s what some experts thinkDon’t blame the Fed’ for high mortgage rates, says Zillow chief economist—the real culprit and his predictions for 2024“ (02-06-24)

“The US economy is in a tricky spot. To close out 2023, fourth quarter GDP measured at a robust 3.3% annual growth rate, but inflation remains above the Fed’s desired 2% target, so the central bank has yet to cut interest rates.”

NAR  –  “Mortgage Rates Likely to Remain Stable After Fed Move” (02-02-2024)

“The Federal Reserve signaled possible rate cuts to come, which could influence lower mortgage rates and spur housing activity.”

Yahoo Finance –  “Commercial real estate a ‘manageable’ problem but some banks will close: Powell” (02-06-24)

“Federal Reserve chair Jerome Powell is predicting that more small banks will likely close or merge due to commercial real estate weaknesses, but that the problem is ultimately “manageable.”

Redfin –  “32% of Homes for Sale in the Fourth Quarter Were Newly Built—Just Shy of the Record High” (02-01-2024)

“Nationwide, 31.8% of U.S. single-family homes for sale in the fourth quarter were new construction, comparable with 31.9% a year earlier, which is the highest level of any fourth quarter on record. ”

NAR –  “Home Designer Shares ‘Ins’ and ‘Outs’ for 2024” (02-05-24)

“What home improvement projects should your clients take on this year? After crunching the latest data from Thumbtack, a home services website, design expert Morgan Olsen chimes in with her picks for the “ins” and “outs” of the new year.”