Which upcoming dates could move the mortgage market?
A recent article from CBS News took a look at the calendar and worked out three key dates that folks looking for mortgage rates to fall should watch out for.
The first and nearest date is July 11th, 2024. That’s when we get the next round of meaningful inflation data from the Bureau of Labor Statistics. The inflation rate has cooled from 3.5% in March 2024 to 3.3% in May 2024, but it’s still far off from the Fed’s 2.0% target. However, another cool inflation report could bring renewed optimism for interest rate cuts back to the market.
July 31st, 2024 was the second date on the list. That’s when the Fed will conclude its next two-day meeting, and it will announce next steps for interest rates. It’s currently expected that the Fed will hold rates where they are into the fall, but cooling inflation and slowing jobs market may force their hand earlier than experts are currently predicting.
The third key date to watch out for is August 1st, 2024. The Fed doesn’t announce its moves until 2:30 PM EST on July 31st. This gives markets little time to fully digest and react to how the Fed moves. This is the first day after their announcement, and we could see significant movement in the mortgage market on the first day of August depending on how the market reacts to Chairman Powell’s press conference.
Which markets are seeing home prices drop?
Realtor.com reviewed the latest home price data, and found that at least 11 major metro areas are seeing dips in home prices when comparing median home prices in May 2024 to May 2023.
Two of the top 11 markets that saw a decline in home prices year-over-year were in Florida. Miami took the top spot with an 11.2% dip in its median home price year-over-year, while Tampa, FL came in 7th wth a 3.2% dip.
Miami was the only market to see a double-digit change. Denver, CO came in second place with a 6.3% change year-over-year.
How much home equity do Americans have?
According to recent data from CoreLogic, homeowners with mortgages saw a collective annual increase in home equity of $1.5 trillion in the first quarter of 2024. On average, American homeowners sit on over $300,000 in home equity.
Selma Hepp, the chief economist at CoreLogic, stated, “With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023 .”
28 out of 50 states in the U.S. saw homeowners pick up an average equity gain of over $20,000. Homeowners in California saw an average gain in equity of over $64,000 in Q1 2024.
If you’ve thought about tapping into your home equity, you may want to look into a HELOC from Guaranteed Rate. Whether you’re looking to do home improvement or consolidate other debts, a home equity line of credit may be the solution you’re looking for.
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