Rate Watch update: January 2023

Lowest rates in 5 months!

Inflation data came out last week and, as expected, inflation is responding to the Fed's rate hikes and therefore, inflation is cooling. The Fed rate hikes are not the same as mortgage rate hikes, but they can go hand in hand depending on how the markets move and consumers spend. The mortgage rates are actually closely tied to the bond market and with the slightly positive economic news last week, mortgage rates have actually come down! This is the lowest rate we have seen in 5 months!

We are starting to see Buyers re-enter the market and things are heating back up again. This past weekend we even saw a few multiple offer situations!

While inventory is higher than last year, we are still drastically low and with Buyers returning, competition may pick back up. We do not think it will be as crazy as 20/21 (and we are thankful for that), but it is statistically a very good time to be a Seller right now!

Buyers, there is good news for you too! 🥂Rates are lower, some sellers are still motivated to move their homes and offer a rate buydown or pricing concession AND you don't have to bid over list, waive appraisal or forgo any inspection negotiations; saving you tens of thousands.

Sweet spot? Seems like it to me..