Market Summary Federal Reserve introduces

Market Summary

Federal Reserve introduces instant payment, FedNow services this week. The FedNow service went live on July 20, 2023
CPI rises 0.2 percent in June on a seasonally adjusted basis. CPI Stood at 3% from a year ago March 2021.
China’s hypergrowth slows down. Real estate and government fueled boom is coming to an end.
Fed keeps squeezing the peddle on rate hike. Federal Reserve raises Rate to 0.25%.

The Fed fund rate stands at 5.25% – 5.5% highest in 22 years. The quarter point hike was unanimous.

Consumer growing slowly.
Fed will be data dependent and have left room open for further rate hikes. “We can afford to be a little patient, as well as resolute, as we let this unfold,” Fed chair Powell said.
The next meeting is in September. We have 2 more months of CPI that Fed will take into consideration.
Policy will still be held at Restrictive levels.
Fed won’t be cutting rates this year – Powell.

Personal Saving Rate of American is shrinking since covid high

As noticed from the graph from St Louis Fed. The saving rate stood at 4.6 in May 2023 a significant drop of 33.8 in Apr 2020. The decline is below the average. Does this mean Americans are running out of money to spend ?

Mortgage Rate Update

Long term rates continue to fall 15 years stood at 6.06% and 30 years stood at 6.78%

Market Stats

The Median Price per square foot in Collin County stood at $216.86. Active Listings were up 0.2% YoY

Lock-In Effect is Real in Residential Real estate.

According to Realtor.com, there were 26% fewer U.S. homes listed for sale in June 2023 than in June 2022, and 28.9% fewer than in June 2019. An interesting article on fortune.com summed this well “just consider the fact that 91% of mortgage borrowers have an interest rate below 5%, including 70.7% with an interest rate below 4%. For those homeowners, it simply doesn’t make a lot of sense to sell and purchase a property right now at a 6% or 7% mortgage rate.”

A Recent tweet by @NewsLambert from Fortune magazine draws attention to the fact of lock in effect

Inventory shift between May 2019 and May 2023:

Austin –> +4%
Lakeland, Fla. –> -8%
Colorado Springs –> -12%
Boise City –> -14%

New Haven, CT –> -74%
Allentown, PA –> -74%
Bridgeport, CT –> -78%
Hartford, CT –> -80% pic.twitter.com/EP4HU6mBPi

— Lance Lambert (@NewsLambert) June 19, 2023

Texas Ranked in Top 10 on CNBC Annual Ranking of Top States for Business 2023

CNBC annual ranking of Top states is out and the top spot for business this year went to North Carolina followed by Virginia and Tennesse.

Georgia stood at #4, Minnesota at #5 followed by Texas. Texas was ranked # 2 in workforce

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

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