This Month in Housing! Your look into how 3rd Quarter 2023 closed out in your local real estate market and how it compares to 3rd Quarter 2022. Covering Muscogee and Harris counties in GA & Russell and Lee counties in AL. Below this video is some of the latest mortgage info with Dustin Steele w/ Northpointe Bank.
Remarks from our local Mortgage Expert, Dustin Steele:
Below is a breakdown of current rates, previous months rates, comments from the Fed, and other tidbits.
The rates below are quoted with a 1% discount charge. Par rarely exist in the current market, and if it does it, you’re likely looking over 8%. Paying discount has become the norm because par is higher than anyone is comfortable with. I can’t recall a worse 2 week stretch than the one we are currently in. My recommendation is to lock in. Floating is far too risky right now.
– Current rates:
o Conventional – 7.625%
o FHA & VA – 7%
– Rates last months market update video
o Conventional – 6.99%
o FHA & VA – 6.5%
Fed Comments:
– Tuesday we heard from several Fed members – Here is a breakdown of their comments
o Fed Gov Michele Bowman called for at least 2 more rates hikes and Cleveland Fed President Loretta Mester called for only one. On the flip side, Fed Vice Chair Michael Barr was hesitant to push the idea of needing more rate hikes, saying we are “likely at or very near” a range that is sufficiently restrictive. Although we heard both good and bad opinions from Fed members, this is always interpreted as uncertainty. Uncertainty always translates to higher rates.
Tidbits:
– 10-year treasury is the highest it has been since 2007. The higher the 10 year goes, the higher mortgage rates go.
– The August inflation report came out slightly higher than projected
– ADP is releasing their jobs report tomorrow. They’re forecasting 170,000 new job creations and the unemployment rate to slightly decrease. Both of these figures will likely result in higher rates.