August 6, 2024 | Driving It Home with ABoR's Housing Economist

In this episode of Driving It Home, Dr. Clare Knapp and Emily Chenevert discuss the latest economic developments, particularly focusing on the recent jobs report and its impact on the housing market. The conversation highlights the rise in the unemployment rate to 4.3%, a three-year high, and the addition of fewer new jobs than expected. These factors, along with the market's anticipation of potential Federal Reserve rate cuts, are influencing the 10-year Treasury yield, which has seen a significant decline.
Dr. Knapp explains how these economic changes are expected to lead to a decrease in mortgage rates, potentially easing the pressure on homebuyers facing high listing prices. However, she remains cautious about predicting significant rate cuts, suggesting a moderate reduction may occur, but not as aggressively as some market speculations suggest. This possible decrease in mortgage rates could encourage more buyers to enter the market, though it's unlikely to unleash a significant wave of new buyers.
The discussion also touches on the importance of proper pricing and market positioning for sellers, especially in light of the potential changes in buyer interest due to shifting mortgage rates. Emily and Dr. Knapp emphasize the need for homes to be move-in ready to attract buyers who may already be financially stretched. They conclude with a reminder about upcoming NAR-mandated changes in business rules for REALTORS® coming August 13, highlighting the importance of staying informed and prepared for these updates in the Right Here, Right Now Resource Hub at ABoR.com/RightNow (www.abor.com/r...) .
Links Mentioned
Right Here, Right Now Resource Hub (www.abor.com/r...) - www.abor.com/r...
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