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Sigh of Relief as Inflation Calms
Wednesday Wire – w/ Drew
04/12/2023
This week all eyes are of course on the release of multiple economic reports, primarily the Consumer Price Index (CPI). This report has carried more importance over the past year than any other time as it is one of the most direct reflections of Inflation. Other reports include the ISM Manufacturing report last week, OER (Owner’s Equivalent Rent), and the JOLT survey (Job Openings and Labor Turnover.
The release of the CPI report was right in line with expectations showing continued slow down of inflation in March amid drops in gasoline and grocery prices. This puts US Inflation at 5% which is the lowest it has been since 2021. Remember that even though that appears to be great news, the overall target of the FED is to have Inflation closer to 2% meaning we still have a way to go. There is still much debate as to whether or not the FED will follow through with maintaining the current interest rate or make one final hike 0.25%. In addition to this the JOLT survey showed an addition of 236,000 jobs in March which shows a slight cooling off of the market when compared to the 500k plus jobs added in January. The job market is slowing at a measured pace.
Mortgage applications saw a significant increase last week amongst the interest rate drops climbing by 5.3% on a seasonally adjusted basis. Interest rates settled back into the mid 6’s this week as we continue to remain on a small roller coaster. The old saying “Time is of the Essence” rings much truth when applied to interest rates today. Meaning that the key is to lock in those interest rates on the low points of the roller coaster while attempting to avoid any of the high points. This is done through a process known as floating the rate in which a buyer can choose to have their lender not lock in the interest rate until a low period occurs.
Current projection on interest rates shows that we should have some more occasional softening of rates prior to the next FED meeting which is scheduled for the first week of May. I would anticipate this to occur over the course of next week as Economists try to gage whether or not the FED will impose an increase or not. Expect the lows to come in around 6.125% while the highs remain around 6.625%. The current trend over the last few months has held the lows occurring most often towards the end of the week.
On a side note – if you heard that FHA is now offering a 40-year mortgage, unfortunately you heard wrong. This question was asked of me several times over the past week. FHA announced a new Loan Modification Option that has a 40-year repayment term but this is an option for select existing FHA mortgages. Reporters misinterpreted the initial news because they did not read the released article thoroughly.
* interest rates may vary dependent on credit score and other factors
Drew Waack
Mortgage Advisor
NMLS #: 1573539
The Best of the Best
Better Homes and Gardens Real Estate Journey has been named the recipient of a national award for their exceptional performance within the Better Homes and Gardens Real Estate global franchise. The company has been ranked as #1 in net growth and in the Top 10 of units sold, showcasing their incredible dedication and success in the industry. Better Homes and Gardens Real Estate Journey raised their volume from $411,616,006 in 2021 to $632,205,801 in 2022, for a 13.64% increase in net growth and up 1466 units.
“We are thrilled to receive this recognition from Better Homes and Gardens Real Estate,” said Ben Fox, co-owner of Better Homes and Gardens Real Estate Journey. “Our team has worked tirelessly to achieve this level of success, and we are proud to have been acknowledged for our efforts. Our commitment to excellence and providing outstanding service to our clients remains our top priority.”
Better Homes and Gardens Real Estate Journey is known for being supportive and motivational, providing its agents with the tools and resources necessary to achieve success in the real estate industry. This recognition is a testament to their hard work and dedication, and the company looks forward to continuing its success in the future.
Several agents also earned national recognition. Matthew Bastian earned the 2022 National Rookie of the Year Award for his outstanding performance in his first full year in business. “Matthew hit the ground running. He is a professional and truly cares about his client’s best interest. This is what has made him number one in their hearts and earned him Rookie of the Year!” said Marion Aust, Principal Broker and Owner. The Mayer Team, with $49M in total sales, made Founders Club which is the top 1% of BHGRE Teams. Nationally they are ranked 14th. Natalie Edwards also made Founders Club as an individual agent, putting her in the elite group of 1% top sales agents by volume.
Additionally, BHGRE Journey was awarded the Greater Bentonville Chamber of Commerce “Main Street Member of the Year” award for their continuous community involvement, such as the Bentonville Half Marathon, First Friday’s, Farmers Markets, Parades, Special Olympics events and more.
Better Homes and Gardens Real Estate Journey is a full-service, inclusive, real estate brokerage firm with two offices that serves all of Northwest Arkansas. The company’s agents are committed to providing clients with the highest level of service and support, helping them achieve their real estate goals.
The growing Better Homes and Gardens® Real Estate network includes approximately 12,400 independent sales associates in approximately 420 offices serving home buyers and sellers across the United States, Canada, Jamaica, The Bahamas, Australia and Turkey.
Wall Street Journal Today: Walmart Helped Put Northwest Arkansas on the Map. Now Everybody Wants a Piece of It.
The once little-known region got a boost from the giant retailer and corporations like Tyson Foods and J.B. Hunt, but now workers from all over the country are flocking there.
Clio and Adam Mills didn’t know much about Northwest Arkansas when, in July 2021, they visited a friend who lived in Bentonville. Mrs. Mills, who lived with Mr. Mills in Los Angeles at the time, said they immediately fell in love with the “growth and excitement” happening there. They especially liked the local focus on health and wellness. She said the Cocoon Yoga Lab, a local yoga studio, is the best studio she’s ever been to.
The day after they arrived in Bentonville, Mrs. Mills, 37, founder of the digital and talent marketing agency Booje Media, asked to meet with her friend’s real-estate agent. “We met with her the next day,” she said. About a week after their visit, the Mills put an offer on a three-bedroom home on over 3 acres in Bentonville. They closed on it for about $550,000.
