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- Fed holds rates steady, notes progress on inflation
Fed holds rates steady, notes progress on inflation
Plus: Mortgage rates fall to lowest level since February
🥳 Happy August Friday! Today’s newsletter is 582 words, a 2.5-minute read.
Disclaimer: Average mortgage rates as of August 1, 2024. © MND's Daily Rate Index.
1. Fed holds rates steady, notes progress on inflation
Although the Federal Reserve on Wednesday left its benchmark interest rate unchanged, Chair Jerome Powell said the "time is drawing near" for the central bank to begin trimming borrowing costs.
That could occur as soon as the Fed's next policy meeting in September, assuming economic data continues to show cooling inflation, he added.
The time for a rate cut "is approaching, and if we do get the data we hope we get, then reduction of our policy rate could be on the table at our September meeting," Powell told reporters at the press conference.
2. Mortgage rates fall to lowest level since February
The average rate on the 30-year mortgage fell to 6.73% this week, its lowest level since February as the bond market reacted to signs of cooling inflation.
This was 5 basis points lower than a week earlier when it averaged 6.78%, according to Freddie Mac. It averaged 6.90% during the same period a year ago.
The average rate on the 15-year fixed mortgage dropped to 5.99% from 6.07% last week. One year ago, the rate on the 15-year fixed note averaged 6.25%.
"Many borrowers may be hoping and waiting for mortgage rates to decline even further, which is what we expect to happen once the Federal Reserve begins to cut short-term rates"
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3. More Nuggets
🏘️ Pending home sales rise for the first time in three months. (NAR)
😬 Lowest homeownership rate for younger householders in four years. (NAHB)
📈 Homeowner equity is on the rise again across the U.S. (ATTOM)
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67% of Homebuyers use this Loan Officer!! Whoa! (Video)
— Dave Krichmar CEO
4. Charted: Active housing inventory for sale compared to pre-pandemic levels
Tennessee joins Florida, Idaho, and Texas in the group of markets that have returned to pre-pandemic inventory levels
Shift between July 2019 and July 2024 • Source: ResiClub analysis of listing data from Realtor
5. Zillow releases 24 state-compliant short-term touring agreements
Zillow is introducing a new optional touring agreement in 24 states ahead of the upcoming NAR settlement changes on August 17.
This non-exclusive contract is designed to be state-compliant and aims to help agents navigate new industry requirements. While not mandatory, the agreement serves as an introductory step that could lead to a formal buyer agency agreement.
“Zillow is not required to offer consumer-facing agreements in light of the proposed NAR settlement, but we have an opportunity to provide tools for the industry to fulfill these requirements in a way that puts the consumer first”
☀️ You’re all caught up. See you on Monday!
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