November 15, 2024
- The Realtor.com® economics team video update gives you the relevant economic and real estate information you need to know each week every Friday to navigate the housing market as a homebuyer, home seller, or industry professional.
- For the week ending November 15, Realtor.com® Chief Economist Danielle Hale recaps the latest economic commentary on the uptick in consumer prices which underscores the Fed’s need to be vigilant next month ahead of its decision on a rate cut.
- The Fed will see additional inflation readings as well as job market indicators before its December meeting and decision. But October inflation data underscore the Fed’s need to be vigilant and remind us that the next decision is not preset. In fact, Chair Jerome Powell noted this week that, “The economy is not sending any signals that we need to be in a hurry to lower rates.”
- Since the beginning of November, 10-year Treasury yields have hovered in the 4.3% to 4.5% range, and this week was no exception. Mortgage rates reflect this relative steadiness dropping just one basis point this week to 6.78%, but it’s worth noting that rates are up 70 basis points from their September lows, creating a headwind for homebuyers and sellers.
- Mortgage applications also rose slightly in the week, and hovered just 1% above their year ago level. Both FHA and VA loans saw stronger growth and as a result, increase their share of total applications.
- In honor of Veteran’s Day earlier this week, Realtor.com did a deep dive on VA loans and found that their benefits are particularly advantageous in today’s housing market. These loans offer eligible buyers zero down payments and flexible credit terms. As a result, VA borrowers are more than twice as likely to have lower credit, and they’re also more likely to have a lower interest rate. These advantages translate into real monthly savings on housing costs.
- From an inventory perspective, weekly housing data from Realtor.com show that homes for sale continued to climb along with a growing number of new sellers compared to last year, but momentum was somewhat weaker. Home prices were essentially flat and homes took slightly longer to sell compared to one year ago.
VIDEO TRANSCRIPT:
- I’m Danielle Hale, Chief Economist at Realtor.com®. And here’s what you need to know about the economy and housing market this week!
- An updated reading on consumer prices showed a modest uptick in October that was particularly pronounced in core inflation. Similar trends were seen in producer prices. In particular, housing costs were an important driver, accounting for half of the overall increase.
- The Fed will see additional inflation readings as well as job market indicators before its December meeting, but October inflation data underscore the Fed’s need to be vigilant and remind us that the next decision is not preset. In fact, Chair Powell noted this week that, “The economy is not sending any signals that we need to be in a hurry to lower rates.”
- Since the beginning of November, 10-year yields have hovered in the 4.3 to 4.5% range, and this week was no exception. Mortgage rates reflect this relative steadiness dropping just one basis point this week to 6.78%, but it’s worth noting that today’s rates are up 70 basis points from their September lows, creating a headwind for homebuyers and sellers.
- Nonetheless, mortgage applications rose slightly in the week and hovered just 1% above their year ago level. Both FHA and VA loans saw stronger growth and as a result increased their share of the total applications.
- In honor of Veteran’s Day earlier this week, Realtor.com did a deep dive on VA loans and found that their benefits are particularly advantageous in today’s housing market.
- VA loans offer eligible buyers zero down payments and flexible credit terms. As a result, VA borrowers are more than twice as likely to have a low down payment, they’re more likely to have lower credit, and they’re also more likely to have a lower interest rate. Taken together, these advantages translate into real monthly savings on housing costs.
- From an inventory perspective, weekly housing data from Realtor.com show that homes for sale continued to climb along with a growing number of new sellers compared to last year, but momentum was somewhat weaker.
- Home prices were essentially flat and homes took slightly longer to sell compared to one year ago.
- You’ll find all the details, including full reports and our housing data for download, at realtor.com/research. You can also follow us on X (formerly twitter) for real time updates. And instagram for graphics.
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