Fed Week is upon us! What can we expect from the market this week?

Federal Reserve | Mortgage Rate News

What’s on the financial calendar for this week?

In addition to the Federal Open Market Committee meeting, the following events are on the schedule for this week:

Monday, January 30th

No events scheduled

Tuesday, January 31st

Employment Cost Index for Q4 2022
S&P Case-Shiller home price index for Nov. 2022
FHFA home price guide for Nov. 2022
Rental vacancy rate for Q4 2022

Wednesday, February 1st

ADP employment report for Jan. 2023
Job openings & Quits for Dec. 2022
Construction spending for Dec. 2022
Fed Chair Jerome Powell news conference

Thursday, February 2nd

Initial jobless claims
Continuing jobless claims
Factory orders for Dec. 2022
Productivity & unit labor costs for Q4 2022

Friday, February 3rd

Nonfarm payrolls for Jan. 2023
Unemployment rate for Jan. 2023
Average hourly earnings for Jan. 2023
Labor-force participation rate, 25-54-year-olds for Jan. 2023

What does the current trend for mortgage rates look like?

Mortgage rates have trended downward since November 2022, but since then, they’ve been fairly stable in comparison to the previous year. The national average for a 30-year, fixed rate mortgage has been in a range of just over half a percent for more than three months. That’s the most stable three months that we’ve seen since 2021.

While we haven’t seen a massive correction to the downside, we haven’t seen upward movement, and the market seems to have calmed down. It remains to be seen if rates are going to go down from here, but they appear to have stabilized.

Which housing markets are currently overvalued?

We spend a lot of time looking for markets that have value or have seen a price dip, but which areas are still a challenge for homebuyers to find homes in? U.S. News & World Report completed a recent housing survey and found that the most overvalued areas to buy into are on the West Coast. Markets throughout California, Seattle, and “Zoom Towns” like Boise, ID and Greeley, CO are currently among the toughest markets to find housing in.

When it comes to renting, markets in California and Florida dominated the list of areas with overvalued rental payments.

There are several metro areas throughout the US that have seen a dip in housing prices, but homebuyers and renters will likely continue to find challenging markets in some of the more popular, coastal locations in the country.

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