Real Estate Minute

Interest Rates Spike 0.25%

The biggest news this week was mortgage rates spiked after a strong job report. The Feds has cut interest rates (benchmark rate) by 0.50% instead of 0.25% due to the anticipation of a weaker economy.

Quite a big jump on interest rates of 0.27% today.

Job Report Beats Expectations

The labor market came back in September, adding 254,000 jobs. Powell did note that the economy is in good shape, “it's growing at a solid pace.”

Feds Might Not Cut Rates At All

Since the job report shows positive signs in the labor market. The debate now is whether to loosen monetary policy at all. In the November meeting the feds will decide to do a smaller cut or not doing any rate cuts at all.

Home Buying Demand Surge After Interest Rate Cut

Mortgage rate lock increase 68% weeks after the feds decided to cut their rates.

Purchase mortgage application are up 10% compared to last month, August 2024 vs. September 2024.