In SureFire Customer Relationship Management’s weekly release of their “Markets in a Minute” for the week ending January 4, 2019 we received good news for a new year…rates are down; but, are they likely to drop even more? Below are just a few reasons why NOW may be the time to buy…
- December’s private payroll saw its biggest monthly increase in nearly 2 years, suggesting sustained strength in the labor market despite ongoing financial market volatility.
- Weak performance and volatility in stocks have driven investors to the safety of bonds. As yields fall, mortgage rates are likely to drop along with them.
- A dip in consumer confidence shows households may be worried about the economy. If the economy slows, mortgage rates could benefit further.
- Home prices are still rising, albeit at a slower pace than we’ve recently seen. Prices were up 5.1% nationally in November 2018 over November 2017.
- Although higher mortgage rates have been blamed as a factor for a slowdown in rising home prices, recent rate drops could reverse that trend.
- Home equity, currently nearing $15 trillion, has surpassed its prior 2006 “housing bubble” peak by over $1 trillion. This could help expand options for current homeowners.
*Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.