Home Builder Cancellation Rates Drop

This comprehensive article covers trends, case studies, and FAQs related to home builder cancellation rates. Discover why home builder cancellation rates are dropping and learn effective strategies to reduce them.

Introduction

It is exciting to build a home, but it is not without challenges. One of the biggest concerns for home builders is cancellation rates, which can adversely affect their business. In this article, we will explore the world of home builder cancellation rates, discuss recent trends, and provide strategies to help builders reduce cancellations and improve customer satisfaction.

Understanding Home Builder Cancellation Rates

1. What are home builder cancellation rates?

The cancellation rate for home builders is the percentage of clients who cancel their contracts or agreements before construction is complete. In addition to cancellations occurring during the pre-construction phase, there are also cancellations occurring after construction has begun.

2. Why do home builder cancellation rates matter?

Home builder cancellation rates are an important metric for builders as they directly affect their revenue, reputation, and overall success. When cancellation rates are high, financial losses may occur, projects may be delayed, and customer trust may be negatively impacted. On the other hand, low cancellation rates indicate satisfied customers, smooth operations, and an increase in profitability.

3. Factors influencing home builder cancellation rates

The cancellation rate of home builders is influenced by several factors. Among these factors are changes in the buyer's financial situation, unforeseen circumstances, dissatisfaction with construction progress, or issues related to communication and customer service. To minimize cancellations, builders must understand these factors in order to address the root causes.

Trends in Home Builder Cancellation Rates

1. Historical overview of home builder cancellation rates

Historical data indicates that home builder cancellation rates have been a persistent challenge for the industry. As cancellation rates have fluctuated over time, they have been influenced by economic downturns, changes in housing market conditions, and other external factors. Recently, however, builders have taken proactive measures to improve this area, leading to promising improvements.

2. Recent improvements in cancellation rates

 

The home building industry has made significant progress in reducing cancellation rates in recent years. The builder has been able to build trust, improve satisfaction levels, and reduce cancellations by enhancing the customer experience, streamlining construction processes, and implementing effective communication strategies. Overall, these positive trends are encouraging.

Strategies for Reducing Home Builder Cancellation Rates

Home builders can minimize cancellation rates by taking a proactive and customer-centric approach. Here are some strategies that can be used to minimize cancellations:

1. Improving customer communication and transparency

Building trust and addressing customer concerns requires clear and open communication. Builders are required to provide regular updates, provide transparency regarding the construction timeline, and respond promptly to customer inquiries. Customer service teams can make a significant difference when they have access to effective communication channels, such as personalized emails, progress reports, and dedicated customer service teams.

2. Construction quality and timely delivery

For customers to be satisfied, builders must prioritize construction quality, adhere to timelines, and efficiently handle any unexpected delays. In order to ensure a smooth construction process, skilled contractors should be employed, thorough inspections conducted, and reliable project management systems should be utilized.

3. Offering flexible financing options

A number of factors contribute to home buyer cancellations, including financial constraints. To mitigate this issue, builders can offer flexible financing options, such as down payment assistance programs, partnerships with lenders, or installment plans. As a result of providing accessible financing options, home ownership will become more attainable and cancellations due to financial reasons will be reduced.

4. Providing exceptional customer service

The provision of exceptional customer service contributes significantly to the satisfaction of buyers. Builders should prioritize customer needs, promptly address complaints and issues, and go the extra mile to ensure a positive experience throughout the home building process. This includes offering customized design options, organizing homeowner orientation sessions, or providing warranties and after-sales support.

Case Studies Successful Home Builders with Low Cancellation Rates

1. ABC Builders: A case study in effective customer engagement

ABC Builders, a leading home construction company, has successfully reduced cancellation rates by focusing on customer service. By leveraging technology, they provide a seamless and transparent experience for buyers. Through their online portals, customers can track construction progress, access important documents, and communicate with project managers. Their low cancellation rates can be attributed to regular updates, customized design consultations, and proactive customer service.

XYZ Homes: Delivering quality and meeting deadlines

 

By consistently delivering high-quality homes within the promised timelines, XYZ Homes has built a strong reputation. The company prioritizes construction quality by working closely with skilled contractors and conducting thorough inspections at various stages throughout the construction process. XYZ Homes has successfully minimized cancellations and earned the trust of its customers by efficiently managing their construction processes and closely monitoring progress.

 

Home Builder Cancellation Rates Drop

 

With home builder cancellation rates normalizing, the Census Bureau may have been overestimating new home sales and underestimating inventory when cancellation rates were rising. However, this could be reversing now as home builder cancellation rates have started to decline. When a previously canceled home is resold, the home builder counts it as a sale, but the Census Bureau does not (since it was already counted). It's important to understand the potential impact of changing cancellation rates on reported new home sales. Many Orlando Home Builders are still offering aggressive incentives to bring buyers in.

FAQ’s

1. What is the average cancellation rate for home builders?

In the construction industry, the average cancellation rate can range from 15% to 30%, depending on several factors, including market conditions, geographical location, and the builder's reputation.

2. How do home builders calculate cancellation rates?

In the home building industry, cancellation rates are calculated by dividing the number of contracts that have been canceled by the total number of contracts signed over a given period.

3. Can home builders recover from high cancellation rates?

When home builders implement strategies to address the underlying causes, they can recover from high cancellation rates. The goal may be to improve customer communication, enhance construction quality, offer incentives to buyers, and deliver exceptional customer service. Builders can regain customer trust and reduce cancellations by taking a proactive approach and implementing the right measures.

4. Are there regional variations in home builder cancellation rates?

Builders operating in different regions may face unique challenges and experience varying cancellation rates as a result of factors such as local market conditions, economic stability, and housing demand.

5. What role does the housing market play in cancellation rates?

Housing market fluctuations play an important role in cancellation rates. During times of economic uncertainty or market fluctuations, buyers may become more cautious and cancel contracts as a result of financial concerns or personal changes. As buyers feel more confident in their investment, a stable and favorable housing market can result in lower cancellation rates.

Conclusion

 

For home builders who aim to achieve success in the industry, reducing cancellation rates is an essential goal. In order to create a positive and satisfying experience for their buyers, builders should implement effective strategies such as improving communication, increasing construction quality, providing flexible financing options, and prioritizing customer service. In addition to reducing cancellations, they also cultivate long-term customer loyalty and build a strong reputation. An ever-evolving housing market can be navigated and achieved with continuous improvement and a customer-centric approach.

 

Just Listed | 1128 Bent Birch Ct

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Introduction

1. About the Property

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2. Location and Surroundings

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3. Key Features and Amenities

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Property Description

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Nearby Amenities

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2. Educational Institutions

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4. Recreational and Leisure Activities

 

Just Listed | 1128 Bent Birch Ct is located in an area that is rich in recreational and leisure opportunities. From golfing to hiking to cultural events to exploring nature, there is something for everyone nearby Just Listed | 1128 Bent Birch Ct.

 

This 3 bedroom and 2.5 bath townhome is located in Country Creek of Altamonte Springs, FL, offering the perfect combination of convenience and community amenities. With a convenient location close to 441 and the Maitland Exchange, you can easily access I-4 and 429. The HOA takes care of the front yard maintenance, allowing you to enjoy the 1128 Bent Birch Court, Altamonte Springs, FL 32174 property worry-free. This spacious 1688 sq. feet townhome offers all the comfort and space of a single family home, with the added convenience of living in a community with great amenities. Enjoy two pools, two tennis courts, two racquetball courts, four playgrounds, a gazebo, three picnic areas, a clubhouse, and walking trails. Plus, you can stay connected with WiFi available at both the pools and clubhouse. Country Creek of Altamonte Springs is the perfect place to call home.

 

View Full Details: 1128 Bent Birch Property Page

FAQ’s

1. How many bedrooms and bathrooms does the property have?

A new listing for sale at 1128 Bent Birch Ct includes [number of bedrooms] bedrooms as well as [number of bathrooms] bathrooms, which provides ample room for comfortable living.

2. What is the size of the property?

A detailed description of the dimensions of Just Listed | 1128 Bent Birch Ct can be found in the property specifications. Please refer to the official listing for an exact measurement or consult the real estate agent.

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The property at 1128 Bent Birch Ct offers [number of parking spaces] parking spaces, including a [garage type] garage, providing convenient and secure parking for residents and guests.

4. Are pets allowed in the property?

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Conclusion

 

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Orlando Weekly Housing Market Update

March 23, 2023

 

 

 

Federal Reserve Increases Rates.25%, How Does That Affect Real Estate?

Good morning, Brenden Rendo with The Homes In Orlando Team joined again by Joseph Dionne.

 I don't know what the 1361176 is. But, hey, from Appli home loans

 my number.

 Right. Well, is that what number? yeah,

 that's, but, that, that, I guess I, I, I'm using a different computer today because I'm on the road and I think, I didn't realize that was, that was in the system.

 so I just, I was like here every week my title changes. My name changes on here.

 Well, I've gotten so

 used to the mortgage guru.

 So I, that's my favourite one, you know.

 So we've got, so a lot of news coming out, you know, again this week, of course, we had Jerome poll yesterday, and the fed and, I actually got a chance to watch the, news conference live and for someone who's trying to invoke confidence in the banking system came across really weak,

 all that he was not confident yesterday. Was he? My goodness. No,

 no, I, you know, when you're doing a presentation, you wanna, you know, be boisterous, you know, you stand tall and he was very meek in both his mannerisms.

 He's a, he's a quiet person anyways.

 But in his mannerisms and his, his vocal content, he really just kind of avoided a ton of questions.

 Yeah. You know, and that didn't, that didn't invoke a whole lot of confidence in me.

 not at all.

 I think the main, the, the couple of the major points that I took out of it is they're really not sure which way to go because you've got banks in trouble because of the increase in the interest rates.

 he doubled down and gaining employment To 4.5%, which is about, I think it was between 1.4 and two million people losing their jobs by the end of the year.

 And, then he just kind of totally avoided what a lot of people are starting to look at, which is the commercial mortgage backed securities, which I mean, he totally blew off that question just right over his head.

 which a lot of people are starting to bring up that, hey, the exposure on these is a lot bigger than even on the, on some of the bond situations that we currently have.

 So I just, I walked away going. not, not, not sure what's, what's gonna happen.

 He, he kind of said that they may back off the rates.

 He did say his, they're, they're projected is 5.1 for the end of the

 year. Yeah, which means a little bit of change.

 Yeah, it means, you know, you're probably gonna get another, you know, and, well, at this point, what another quarter of a point before it drops out something somewhere in that ballpark.

 So, but he also felt that the, the bank runs are going to help tighten the overall, credit available out there because as the banks get fearful of all this exposure, they're going to start tightening their requirements on their lending.

 And I've actually read some, read some stories, recently where a number of the credit companies credit, you know, credit card companies are starting to lower the limits.

 people. Yeah.

 So he felt that, that alone, that, that, as well as the increase in the rates could actually, be enough to tighten things down without possibly too much more rate increases.

 So, I mean, when we look at the, Where the betting game is going right now is probabilities at the next meeting, which is about, is actually 41 days away.

 You got 55% of the people are saying no change to the rates And you have 44% right now saying that they're, they're gonna increase it and looks like a quarter of a point.

 I think it really depends on where, what happens with the banks.

 Yeah, I think, I think that's where we are, like you said, there's so much data that's not being accounted for.

 Like it's gonna be really like, it, it's kind of a weird piece is because we've been so focused on the residential side that a lot of this has.

 Like you said, we've been ignoring the commercial side of how that can play into and how that's gonna spill in.

 And the commercial side when you have some defaults on the residential side, they're relatively small.

 A lot of times commercial side, like a little defaults on a commercial side.

 These are big numbers which can have really big impacts to the bottom line and to the budgets and to the the balance sheet of these banks.

 So you can see a big, I, I think, you know, I, I could see us, I, I mean, I see an avenue where I could see the Fed not making another increase this year, you know, and I can also see an avenue where the Fed makes, you know, a half, another half point to three quarters of a point.

 I don't think we're gonna see another full point. No,

 no, I, I don't think we can do it.

 Yeah, and, and that's the hard part is, as you mentioned, I felt like Powell came into this conversation and he backed away in some different areas and he wasn't very confident and he kind of, you know, and that kind of like the markets yesterday really responded positively to what happened yesterday.

 But it was funny because Monday and Tuesday, the markets were just, they were ready for the worst.

 So, like, they were getting worse, like big, you know, a lot of worsening Monday and Tuesday and then we kind of just saw Wednesday after the Feds talk kind of all gained back and kind of had to where we were on Monday before all the worsening.

 So I think it's kind of like, ok, this was better than what we were hoping for.

 But it's kind of like, I don't know, like I, I, I, I, you kind of when you don't have confidence, when you can tell Powell doesn't have confidence, it leaves us kind of stuck in a, I feel like they don't know what they wanna do.

 So now I'm kind of like, I don't know what they're gonna do. Like, yeah,

 you, you, you don't, and then Janet Yellen was actually at another meeting at the exact same time and basically kind of bluntly said we're not, we're not going to protect the regional banks.

 Yeah, deposits are gonna be secured and it's like, ok,

 that's, you know, but they set a precedent, they set a precedent that they would and then it's like, now we're not like I, I get, they probably have to take a stance of like, ok, we did it this one time but it's like, my goodness, I don't know what to say there.

 Yeah,

 I, I don't like when, when the government gets to pick the winners and losers.

 Yeah, that, and that's what it, that's exactly what it sounded like was happening right here.

 It's like, hey, like, you know, these people are gonna be ok and it sounds like they're gonna basically pick and choose who they want to protect and, and, and unfortunately usually that means that, you know, the, the, you know, the lobbyists, the people spending more money, they're gonna be the one to be protected, you know.

 So, you know, you may see some regional banks that maybe are dealing with more like, you know, agricultural sectors and this and that, those may be the ones that they're like, we'll let that go and then the ones that are dealing with more tech, tech side of things, they'll be the ones that, you know, or, or pharmaceutical tech things and stuff of that.

 Those will be the ones protected. Yeah.

 Well, you know, the bank situation isn't over yet. Yeah.

 You know, here's another one of the big regionals pac West 20 you know, 20% of their, their, deposits dropped so that I would consider a bank run and they've had to go out much like, S B B tried to do And raise funds.

 So they, they, I know they've gone back, I believe it's to the, to the repo, got 12 billion there, got from the new program, I think they said they got another four billion there.

 And then yesterday they actually had to go to a hedge fund and raised over another billion dollars there.

 my goodness. So, it's a lot of money they're raising.

 That's a lot. That's a lot of money. Yeah, you gotta, you gotta pay that back too.

 Yeah. So, I mean, the, these, these banks, this bank situation isn't done yet.

 You know, and that's where I think Polls is in a lot of confidence is because he's stuck between a rock and a hard place is, do you go to like the 1923 situation where you had hyperinflation or do you go to the 1929 situation where you had bank runs and collapse the economy?

 Depression,

 can we stay in between those?

 I mean, that's where we're stuck right now.

 You feel like you're stuck in the middle of the road and traffic is coming both ways and you're gonna get smacked in the way you go.

 Yeah.

 Yeah. And, and, and the hard part about this is the pe, and I hate to say it, it's like, you know, there's, there's, there's a small contingency of people that'll feel this right if, if one of those happens and they'll feel it for a day or two.

 But there's a lot of contingency of people that are sitting in the middle and the lower like on the income scales, that'll feel it for months and years if something like that happens.

 And that's the hard part. That's the, and that's really the hard part about this is like, you know, they're not going to, to, you know, they're not going to do something that just greatly impacts, you know, and only the top can impact or like, but that's the hard part is when you're at the top of the food scale, like, you know, food system, you're, you can take, you can weather the storm and it may only impact you a day or two or a month.

 You know, it's everybody else that's gonna feel the brunt of this if they go into one of those extremes.

 And that's where I hope that powe is really, really focused on, is making sure that we don't hit an extreme.

 That's gonna completely because I think that's, if you really negatively impact the middle and the lower, you're gonna see this spiral much, much further back and it's gonna spiral much, much longer.

 Yeah. Yeah. I mean, I just, you, you don't want to see, you know, they call it a recession when, when your friends gets laid off, depression is when you get laid off.

 But when you look at that number that he's saying is, hey, you know, we've, we've got to get him unemployment up to 4.5%.

 You know, and you're gonna, you know, you have a maximum of two million people.

 It's like, and how do you stop it once it starts rolling, how do you stop it from being you know, how do you go under 5%?

 5.5 6%.

 And that's, that's the key right there is that, and I think that's the part that, and, and I'm sure they're looking at it, but that's the part that's not being answered is it's not like a magical number where you can be like, hey, we're gonna go from this to, to that.

 Like, that's such a massive change and I, and I get it like a healthy economy.

 If we're under 5% that's still a healthy economy and all.

 But if it's an abrupt boom, we're gonna pick this number up two million plus people in six months time, that's not healthy.

 And that two month million now you're gonna see businesses immediately react to that.

 Get more conservative across the board which we've seen on the tech sector.

 We've seen the tech sector already sit there and see what Google and Amazon, all these different companies are, are doing where it's like, revenues are down.

 We've got it and they get hyper conservative. Right?

 And, and they're letting go and it's like, all right now it's like Amazon

 Just announced 90,000 layoffs.

 Right. That's a big

 number. I mean, p should be calling up, say thank you. You just took 1/10 of my number.

 I appreciate that.

 Right. You know,

 But an additional 90,000 layoffs.

 Yeah, that's, you know, and, and that's one of those where you got a big company trickles down locally.

 It's like, OK, now all these people who are working at that location for Amazon aren't going to that restaurant, you know, to get meals.

 So, guess what? Now they don't need as many waiters and waitresses. You know,

 they're not taking vacations, they're not buying new cars, they're not doing this, they're not going to the store and buying new technology like it has an impact and that impact has a, you know, it's a snowball and that's the part that I think a lot of people are like, and I think what they're looking is they're looking at it in a bubble and I say, well, this is still ok and they're not going well, where are we now to where do we wanna go?

 Will that have a bigger impact like that will, you know, and

 you can see, you can see the stress on, on the American consumer when you look at, I mean, credit card debt has just exploded.

 Yeah, massive.

 You know, we

 have a trillion dollars in credit card debt in this country.

 It was, it was on the, it was on the down slope and

 you know what, forget about student loan repayment. Let's just wipe everybody's credit card tax.

 It's like, wow, it's really, and it's just, it's just, and when you see the graph, the spike is, you know, just, I

 don't know, you know, let's, let's just go to a model.

 We're just gonna give 50% of our income to the government and, and then nobody will have money to spend anyways.

 

 That's what my brother in, in New York.

 Westchester County, we, we actually calculate and he's like, 64% of his income taxes of some sort or another can make so much more than

 me. Yeah. And he's like, I, I hope you enjoy that noodle in a bowl, noodle in a cup.

 But no, like I think that's where we're kind of seeing this, you know, You know, and we're gonna see an impact.

 But what's crazy is what locally, what are we seeing still?

 We're, we're just steadiness. No, no real peaks, no real valleys, you know, but a AAA slow steadiness, you know, in the, in the overall market and you haven't really seen the construction slow down, which is always a big thing.

 That's what you look at. First.

 You look at that commercial construction and we're still seeing a new project here, a new project there, a new project here, talked to a plumbing company the other day.

 Mr Cox and you know, it was now we're, we're booked out for like 18 months.

 It's not bad. That's not bad.

 So, so the question is, is if we talk to him in six months and he says we're booked out for 12 months, then we have to worry.

 Then

 you have to worry. Yeah. Yeah, then you have to worry.

 But it, the other thing is interesting is the, you look at the, the T bell and we're kind of, it's, it's a real volatile but we're sitting in a range at least, you know, we're not, we're not jumping all over the place and sitting backward down around.

 they were 6.5, roughly.

 yeah. Rate on rates. Yeah, I mean, 6.5. Well, here's the hard part is because it's so volatile.

 We're not seeing those rates kind of like we're not seeing investors play as nice.

 you know, because they're, they're scared, they're scared to get aggressive with their pricing because they don't know because it's flipped.

 You're talking in the last, you know, we've seen 30 40 bit spikes on the 30 year, in, in, in, in an hour or two.

 I was laughing on Tuesday literally.

 I think it was, I think 3 10 PM, we saw a 50 bit spike into the negative like just in a blink in 10 minutes and then over the next two hours it, it, it, it kind of bounced back up and I was like, holy cow, what the heck just happened and I'm trying to find information on what happened and there wasn't really anything big that, that caused it.

 It was just, we had some, you know, some auctions that didn't go as well, but I think it was kind of just like a like, crap.

 And I think somebody sold, like, somebody liquidated quickly and then, you know, and then it had to be bought up type thing.

 Yep. Yep. Yeah. I mean, if, if we look, we really kind of send that range, you know, low three, you know, 3.4, You know, it did come back up here to a little over 3.5, but kind of sit in a range where you can feel a little steadier on your interest rates overall.

 You know, you may lose an eighth year or gain, you know, get an eighth back here, but you're not jumping all over the place like it.

 Like we, we had where 7 to 1 day, six and a quarter, the next day, 6.75 the next day and going into the spring, it's, it's nice.

 I think a lot of people, the sevens like that, that fear, it's a

 Psychological threshold. It is, it's amazing how because like usually in rate movement, like, you know, going from like 3-4, 4 would have been a psychological but we blew by fast so fast that it was

 like,

 yeah, we didn't even have, we couldn't even worry about those, you know, but seven was the point.

 And I think that's where the hard part is, is like there's so much time spent in the threes that seven was, it was like, this is double what it was like, I think that's where psychologically a lot of people are thinking it's like, my gosh, this is double, like and like that, my interest rate is twice as big as what it was.

 And a lot of people have that apprehension but you keep it in the Sixes and I think we're gonna be ok.

 I'd love, love, love to see him back in the fives.

 But I think we've got a shot this year to kind of touch it and to kind of sit at that top side of the five, but it's really gonna depend on and, you know, we all know this like it's gonna depend on what kind of happens.

 And, you know, I, I think if what if what Powell wants happens, we'll see the fives, but I don't, I don't think I want that to happen.

 I'd rather stay in the sixes and not have that.

 So getting into getting into our numbers.

 just like we said, steadiness, you know, throughout throughout the Orlando area.

 So, you know, the the price actually jumped up a little bit average price 4.5%.

 I think that's from, we're gonna, you know, seeing less discounts being yeah, inventory, yeah, drop 43.

 But still I, I kind of look at it as kind of like a flat line.

 So, but here's, here's the big thing again.

 We always, you know, we look at every week is what is the original list sales price and the final list sales price percentage wise.

 And again, we're creeping back up, we're up to almost 95% here on the original.

 And then on the final, we've, they've came back about a half a point.

 We're sitting just below, I think, 97 last week, we're now 97 a half.

 So you're seeing less discount reason for that comes back to, you know, inventory again.

 So, and here we are, I mean, we look at it, it's just sitting here, we're just we're not getting the influx of new homes that normally this time of year we

 get, we get, do you think?

 And I know we've talked about this but you know, do you get that little snappiness like that, that, that meme that we've seen of like the proper English guys like me looking at people that don't have the 2.7 like, you know, like I, I, I feel like there's a lot of people right now going I would move but I have a 2.75 like what am I gonna do?

 And what they're choosing instead to do is be like I'm gonna turn it into a rental. Yeah,

 yeah. And let me take advantage of this because you know, I can go, you know, here in my neighborhood, my gosh, 1800 square feet rent for 2500 to $3000.

 Now, now what I do think will happen is, and this is, this is me being a little bit thinking a little bit, we're different than a lot of markets.

 Right. Borrowers can't qualify and their tax bill doesn't adjust right right away because we have homestead.

 So I think you're gonna have a lot of people that were like my rates. Great.

 I'm gonna rent it and then next year when it's no longer their homestead, that taxpayer is gonna skyrocket and they're gonna be like, crap.

 It's not worth renting and, and then you're gonna see. So I think next year we may see an influx.

 That's, that's a great point because I was doing a calculation for a couple looking to purchase a home in the land That had been homesteaded.

 Jo. Jo had it for 20 years. He was paying like $1,300. Yeah, on his taxes.

 And we put it into the calculator. Theirs will jump to roughly about $5200 with the homestead.

 Yeah.

 And it's like I gotta make, I gotta make you aware of this is, is because, you know, this guy's owned it from like 1997 or something like that.

 I think it was

 Great rental year one. And that's the thing. Still probably a good rental year two.

 But you go from, and that's like a lot of people.

 They can't, if they, if they get a rental and they have a property manager and they go from making 600 a month profit to making 100 a month profit.

 Yeah, they like, they can't afford it, they can't afford for something to go wrong at that point. Right.

 And, and we know that that 600 they're not utilizing that forever.

 So I think that's where you're gonna see a little bit of like, what's gonna happen here long term?

 And I think we will see pro and it's a delayed, I think it's gonna be delayed is we're gonna see people that turned into rentals, rented it out for a year, maybe two.

 And then they're like, ok, it's just not worth it anymore. It's not worth the headache is what, what'll happen.

 you know, so I think that's where we'll see some adjustment.

 Yeah, that's, that's a great point. That's, that's an excellent point.

 So, inventory is kind of flat hoping it'll start to pick up.

 you know, but like the one, the one I'm, I'm, I've got a listing going live, this weekend, but it's a situation where she's 86 and it's time to move her, you know, closer to the family and that's why they're selling, not necessarily wanted to, but it's just, it's, it's that time for her, you know, she can't live on her own anymore.

 You know, it's a beautiful town home, two story town home, you know, and they're just too worried about her falling and getting hurt and stuff like that.

 So, it's not a necessity or it, it's, it's not a want to, it's a necessity situation. Yeah.

 Yeah. Yeah, exactly. And I think that's what we're, most of the listings we're seeing right now.

 That's what we're getting

 overall. Yeah. You're getting people that have to move like something I is impacting where they don't have an option not to move.

 Yeah. And then, you know, at our average days on the market, you know, we're still holding up there, you know, in that 60 range.

 So we did see that drop, which of course, I think was due to the, due to the interest rates, dropping.

 Yep. But I just, I pulled this up this week because I just wanted to take a look at February numbers doing comparisons year over year.

 You know, because last year was a totally different market.

 And it's interesting to, to actually look at this, you know, because inventory wise, we're, we were up 140% over 2022.

 You know, we actually had more homes going on the market though than currently. Why was that?

 Because you knew you could sell your house in a day

 And you were gonna get a phenomenal and it was gonna be a, everybody was going to jump to bid on it.

 So your house is worth 300. You knew you had a shot to get 350.

 Yeah, exactly. Exactly. You know, average price we're up about 9.3%.

 But, you know what's interesting is we're starting to get away from that, the peak.

 So you're gonna start seeing this number drop down over time. Medium price really?

 Isn't that much different though. Yeah.

 But look at your volume, you're about 300, million left and then your average days on market, we've, we've more than doubled, average days on market.

 Yeah. So this, I mean, you look at this and you, it, you realize, man, it was a totally, It's a total different.

 A, yeah, one

 100%. It was

 12 months ago. Tear different. So, everything's the way you approach. Everything has got to change. Yeah,

 exactly.

 So, keeps us on us, keeps us on our toes.

 Always gotta stay on our toes. That's just the way it is.

 Listen, I know you're on a tight schedule today.

 Yes. Yes. I'm actually sitting into what is like a, a closet.

 it's a small office but, I'm actually teaching a class and I was supposed to, my business partner is teaching the first half and I got the second half.

 so I appreciate it, but I wanted to be on this.

 I think we had some good info different. Like, we had like, different.

 It's, you know, the energy was different this week, right?

 Like, you know, kind of followed Powell's energy this week.

 I almost, like, I was like, like, but

 you wanna bring, you wanna bring good news, but you also got to bring the truth and reality to the market and we're, we're just kind of innocent and wait, you know, rates are holding good.

 You know, it's, it's not a bad time.

 You know, inventory levels could be a little bit higher, but I'll tell you what, there's some builder incentives out there that are just knocking the socks off right now and price reductions and their price reductions are, are amazing.

 So there's always opportunities always. So, hey, listen, take care. Have a wonderful day, everyone.

 Thank you for joining us again, youtube. Hit the thumbs up. Appreciate it.

 Subscribe and like talk to you later, man, guys.

 Bye.

 

Home Seller Concessions Grow!

 

 

Home Seller Concessions Grow!

 

Redfin: Almost Half of Home Sellers Now Making Concessions to Buyers A record 13% of home sales include a price cut and a final sale price below the list price in addition to concessions, which often include money toward repairs and mortgage-rate buydowns.  Home sellers gave concessions to buyers in 45.5% of home sales recorded by Redfin agents during the three months. Refin says concessions are becoming more common because rising mortgage rates and stubbornly high home prices have caused many buyers to put their plans on hold. Redfin agents report that sellers are offering to fund repairs, cover closing costs and pay for bidders to buy down their mortgage rates. "Buyers today are way more demanding and selective. Redfin data also showed that in addition to offering more concessions, sellers have become increasingly likely to sell their home for less money than they originally hoped for.

Orlando Weekly Housing Market Update

March 16, 2023

 

 

 

Good morning. It is been

something. Absolutely something.

I'm gonna go with that. Yeah.

You know what I have in my head,

and I was gonna try and and grab it was

to start out with Don Henley's song.

It's goes kick them when they're up,

kick them when they're down take them look.

Because that is that encompasses

this week to a t. Oh, man. Yeah.

It's say craziness this week. It's

been great. All started with What?

SVB, SVB..By now, I'm

sure everyone's aware.

Of SVB, Signature

Bank, Credit Suisse

It's got a bailout out this

morning and fifty six billion

dollars even Europe wanted to get

in on this action. Yeah. Yeah.

Exactly. And then what else

do we get this morning?

We woke up and Jobless claims. Guess what?

They fell they felt we this meeting.

Didn't they fall And then they

went up and were revised up.

But now they're gonna say

they fell again like, do...

Do we just need a little bit of good news

Is that is that what going on here.

We wanted to try to calm everybody

down with some positive news.

That we'll just

revise next week.

What the the the media might manipulate

the news Are? Joe. Je where's your hat

Where's the tin foil... Is that I got

tin foil in it? It does. It does.

It's lined with tin foil. It's

just to keep me warm. Oh my gosh.

Yeah. It just... You know,

the bank failures and you you look

at this stuff and, you

know, I watch barry Be...

I mean, so, you know, of course several

people explaining what went on.

But, you know, you you look

where they try to put in these

rules with the with dodd Frank

to protect from another bank

failure like we had in2008. Guess what.

The rules caused the bank failure.

Too much be bureaucracy. Right?

Yep. Yeah. It... The rule, like

the rule is is that if they

take depositor money and buy treasury bonds

with it which they were encouraging,

banks to bike treasury bonds.

Right? Secure. Yeah. Secure.

But if the bond

yield went down,

they could still claim full value

of the bond on under their sheets.

It what? Yes. That's why that's why when

when they looked at the audit from,

I think two weeks ago, the audit looked

great, except for that little sub.

No way down here. Number fifteen,

or sixteen. Everyone it was.

That that little sub

note down there.

It says, well, we are kind of exposed

because interest rates have gone up.

And if we have to sell, we're gonna

lose our shirt. Yep. And they did.

They did. Yeah. And so what did

that do to our lovely bond market.

Turn that into a total roller

coaster. This is this is five days.

That's it. Five days. Going back

to the eighth. In the ninth.

And just look at this.

Yeah. We were up...

We're up close to to four percent on

the bond yield. Boom what happens?

Okay. Sv b boom. Okay. They did

signature, boom. Well, coming back.

We put in the non bailout

bailout program. Right? Yeah.

It's a fun little program.

It's a funnel program.

I mean, hey, if I could

buy bonds, you know,

and say I could only sell them for eighty

dollar eighty cents on the dollar,

but you're willing give... Let

me loan at a hundred percent.

I'm gonna take that all day long.

That's a win win. It's a win win.

Yeah. Yeah. No, big deal. No

exposure for the taxpayers.

So, yeah. Woo. We saved the banks.

The fed we saved the banks.

Oh, wait. Hold on. Hold on. Hold on. Hold

on. Europe. Chris west bold my beer.

Let me show you. Let me show you some

systemic losses. Boom back down.

You? So we'll be interesting today

because also of sudden, we got the news,

Credit su got got a bailout. Jobs

numbers look phenomenal. Yeah.

Also okay with the world

again. All is okay.

Markets are already kind

of stable, you know,

we're not seeing huge swings in the Mbs

and right now on the thirty year.

You know, it's

it's interesting.

I mean, We are we're seeing

improvements on the thirty year

Mb s and the ten year still

down, but it's kind.

Do we see something else happen

and we see another, you know,

we trade sideways for the day

and then see another drop?

Who else who else can

join? I don't know.

Oh it's just Now what I will say

is for the consumer this has

been fantastic if you were, if you

happen to need to to lock this week,

Because what is all of this meant, Holy

cow it's been great for the consumer.

We're talking almost a half percent in

five days. Like you yep that's nuts.

That's absolutely nuts with what

we've seen on on rates that

we're able to offer consumers

and it's been fantastic.

Now the hard part about that too

is because it's so volatile.

We're just seeing pig, like, like,

these these lenders are like,

holy, like cow. Where do I throw

the dark? So they're... Yeah.

What be where do you price

don't know workings are going.

And thank you so much, sir. Sorry

That. Gotta get Fedex or Ups.

You you beat us better. I'm sorry.

Yeah. Sorry. No but Yeah.

It's just been, you know,

the the the the lenders and so forth,

they're opening

later in the day.

We're seeing more pauses in and

availability of rates we're

seeing bigger swings somewhere

are going out. Not aggressive.

Some are going really

aggressive and sweet.

So I've seen so much movement in

rep and everything else and,

you know, what we've can taught

our consumers is, like like,

this whole, like, if it's

good, lock it, like, yes.

Like, right now is not

the time to play to be like,

does it keep getting

better and better?

I think we will see it kinda

bounce back up a little bit.

I don't know if we're gonna go

all the way to where we were

Thursday of last week. I think

a lot of this news is gonna

keep it a little bit lower.

Yeah. I think... Yeah.

I think maybe for the next week,

until that twenty second. Yep.

I think everyone's gonna take

a deep breath for right now. Yeah.

So I think. To jerome...

Because, you know,

we we've been watching the the fed watch,

know, over the past couple weeks.

And where people are betting and you

know, we were back here you know,

a week ago. Mh. Only thirty one percent

or bet we're gonna take about...

We're gonna take a half

point jump. Yeah.

And then we did our show last Thursday,

it had jumped to eighty one percent.

Yep. Well back on Monday, I saw it back

down to, like, thirty percent now,

this morning guess

where they're back.

They're back to almost a half a point

jump in the rate. I think...

Man it's... I I he I feel like, if

we see the stock market though,

do poorly these next couple of

days? We may only see a quarter.

I'm gonna say, I I'm gonna say,

I think that if we see it, like,

these are the cracks

in the shop.

This is literally what I think, you

know, the fed's one with J Powell.

He wanted to see this. You have these

events that happened this last week,

this was kind of the cracks

that they wanted.

They were expecting something

like this to happen.

And what that fallout looks like? That's

that's gonna be the question mark.

But he wanted to see someone

hit this little nick. Yeah.

Because he isn't a type... Tight spot

because your consumer price index,

your core number still

very strong. Yeah.

Numbers came out and Tuesday,

and they were well above where

they were he they they wanted them to

be. So you got that's still strong.

Right. But year over year though is down

significantly. So we gotta give...

Like, it has gone

down a little bit,

but it is still way higher than

where the feds want. Like.

Then you got the banks with these

bonds that they bought back when,

the... You know, yields

were a lot lower Yep.

You know, taking, you know, buying three,

four year bonds with depositor money,

know if officers want that money

back. They gotta sell the bonds.

Got somewhat lost, But now you got

the stop gap, yeah. The new program.

So I think that's putting a little bit

of surety back in, but he can't...

That's where if he raises

them keeps raising them,

the bank that loss for the banks is

gonna keep getting bigger and bigger.

Yeah. And that's where

you can push, you know,

some of these frail regional

over the brink. And that's...

And that's the hard part. And who,

you know, you like a Silicon valley,

like, they're one type

of original that, like,

they they they lend to just

really risky endeavors. Right?

Like, you know, tech startups

ups, this and that.

You know, crypto

companies kind of like,

they were one of the few banks

willing to lend to them.

You they weren't

diversified or anything.

But, like, regional banks typically

aren't as diversified as big banks.

They just aren't. Like, because

they're the only ones that

are willing to be like,

hey. We're in a farm area.

We're gonna into those farmers. Because

nobody else will, the big box won't.

Like, so they're gonna do those type

of things. So where do we see?

Could we see these these kind

of kinks start to kinda happen

at a higher frequency?

I don't know.

I think that's why

the fed stuck like,

if the fed didn't do what they did

over the weekend, which like,

I'll give them kudos like, the Fed

did some work over the weekend.

Like, Mh. I mean,

I'm shocked. Like...

I mean, I I know it it's tough

for them to have to make a couple

phone calls on a Sunday. I I most of

them probably haven't done that in,

you know, twenty, thirty years. I

don't know. But I think it had to.

Like, they had to. But that's where

now I'm sitting there going okay.

Do we see more? I don't know

if we're gonna see more.

Hopefully, we don't

we we we have...

We have a society now that

panic about toilet paper.

So I really don't wanna see what

happens if if we do have a,

like, multiple banks start to

have some issues because people

will there will be...

Like, I mean,

there will be a run on

the so hopefully not.

You know, the one thing that I

remind a lot of consumers is like,

hey, like, remember, like,

you're protected to two hundred

and fifty thousand for. Like,

very few people have more than

that exposure with the bank. And

the other side of that is, like,

the reason why there was a rhino

silicon Valley is because

these a tech startups that...

Like, if you're a business,

you don't wanna lose a dollar. And

there's no way to get that back.

Like, if I had a million dollars in

the bank I was like, to two fifty.

I'd be, like, you I'm pulling

everything out. Like, like, I get it.

Like, so I don't... You know,

but what does that entail for

us on the radio scale? We're gonna see.

It's gonna be really interesting.

I mean, I know that you pulled up

the ten year treasury the ten,

and what's really cool is... And

I say cool is we started today

below the two hundred day

moving average. Yes.

So we've been bouncing off

of the fifty percent bid,

which I've getting really technical

on this for the last couple

of days is we did it a couple weeks...

You know, back in January.

We kinda of were, you know, started

so do we do we see a move back down?

Maybe, but we can also see

a shift back up really quickly.

So it's gonna be interesting

to see what happens over these

next couple of days. And I

think we will, like you said,

it might cool down until that

twenty second because that's

when hey what's gonna happen with

the bonds with the the federal

fund rate and if they're gonna raise

it. How much are they gonna raise it?

They're gonna raise it. Right?

Like, we... Fifty that's.

It definitely won't

be more than fifty.

Now A lot of people were we're, like

well he's gonna have to pause now.

So I... There's

that... They...

I don't I still see, like, and I I

think there could be twenty five.

You know, twenty five

bp could be it.

Like, I don't think that this

event was the type of credit

event that would cause a change it like,

a change in what they're gonna do.

Like, it wouldn't needed

to be much bigger.

And this was a pretty major event,

but I still think it needed...

It would need to be if, you know,

silicon valley was what, like,

the fourteenth biggest bank, sixty

eleven sixteen biggest bang.

If it would... If Silicon

valley was, like,

the seventh biggest bang or six biggest

bang? I'd be like policies changing.

But I think fourteen was

just... They're big, But...

I mean, you know you know,

Jpmorgan Chase has about ten times

the assets you know, twelve

thirteen times assets as silicon

valley of it you're like

yeah. It's just it...

It's funny when you sit there

and you're thinking about okay.

If I was in Vegas right now, what

way am I bad? Ben on something.

I'm losing, but I'm bet

gotcha. Oh, man. So you...

So from the fifty thousand foot view,

that's what we're looking at.

You know. That that's

everything we're looking at.

But then when you come back down, you

know, and do the thousand foot view,

the ten thousand foot view

over over Orlando, you know,

we're still sitting strong. You

know, still sitting strong.

You know, when we get into our numbers,

you know, you're you're seeing that.

So, you know, our inventory

we dropped about fifty one.

And really, this is the biggest

thing that is driving the the

market here in Orlando.

Is where Yeah.

Where other areas that seeing their

inventory continue to shoot up.

It's not us. It's

just not us.

You know, we're we're holding, but we're

we're sure heck neck not going up.

And you're seeing it again in

the in the pricing. Yeah.

You know, we're we've steadily

decreased the amount of discount

that sellers are willing

to give. Yeah. Sometimes.

And we're just hidden buyer season.

Right? Yeah. Yeah. We're buyer season.

I had... Had a busy Friday. I had three

clients put in three offers on Friday.

Mh. And two of them, both

both went over list.

They in that two hundred and three

hundred thousand dollar market,

Mh. And one of them, call the agent

said I'll be sending over an offer.

We got down it was,

like, five forty three.

You know, got home, you know, about

six thirty, about six forty five.

Had almost the whole

thing typed up.

Go back in just to double check

something on the Ml pending.

I'm like, no.

Yeah. No. No way.

So I called them up and like, hey, Scott.

You know, did you accept an offer?

So like, yeah, I had to. We had to.

It it was just so so much over list.

We we had to take it.

I'm like, wow. Okay.

Then I had a a conduit

over here in El Springs.

Two hundred and forty thousand

dollars, appraisal wise,

it was looking two thirty

two thirty three,

but my gentleman was was willing

to go to the two forty.

And like, okay. Yeah. He's like,

should we go higher go. No.

I think we're okay

At two forty.

You're you're putting down hundred

hundred and something thousand dollars.

Know, we're coming in very

strong. You know, let it...

They let it hang out till Monday and

and we ended up losing that one.

Went over over what they

listed it at. Yeah.

And it's just like, wow. I don't

wanna get into those again.

Oh, please. Please no. That is

that is absolutely no fun.

So anyways, when we we look at

our pricing, you know, again,

median, you know, we're not dropping

our medium pricing, You know,

we fluctuate week to week, but

not a whole heck of a lot. Yeah.

Our sales of course, we did drop

a little bit because, you know,

week after end of the month,

but we are we were we were above

the average again. Yep. And this this

I goes back to what our rates were.

You know, the sensitivity

of the rates.

You know, I think we're

gonna see over the weekend,

we're gonna see more people

come out because oh,

I can save half a percent at my

interest rate. Let me lock and shop.

Yeah. Then This is this

is what I expected to.

A drop in our average

days on market.

You know, we've we went from

a peak of sixty eight pretty much

beginning of February, and

we've dropped eight days. You.

Still kinda high sixty, but to drop

eight days in about four weeks,

that tells you that people

are out shopping. Yeah.

You know, we're we're getting into

that spring. Shopping shopping time.

And then at least it's not dropping

as much as it dropped here.

Know, we lost about fifty homes, you

know, in inventory and not too bad.

But I'm I'm expecting this number

to drop even further. Yeah.

That's gonna be a tough one.

Because I think... I mean, we're...

I I'd like to see it around forty five

hundred where I'd be happy with it.

Yeah. I I don't wanna go above

forty five hundred right now.

I feel like But I I I don't I

definitely don't wanna see that

thirty five hundred.

Yeah. I think if we...

If we were at a forty five hundred

with where the rates are right now.

Mh. It'd be

a pretty balanced.

You're gonna see a little bit

of wheel and dealing. Yep.

But you know, not what we saw

back in in November when we had,

you know, fifty five hundred in inventory,

know, you're you were going in...

We were going in super aggressive

at that time. Oh yeah.

You know, you were asking for less,

like, you know, offering less than us,

asking for, you know, three,

four percent of credits and he

you were getting it. And you

were getting now? Yep. Yep.

Because people just felt like,

oh, the markets, you know,

and you had all that

new news, you know,

of the doom and gloom

of the housing market.

So everyone's feeling you know, that...

That... Oh my gosh. I don't sell now.

I'm not I'm not gonna

be able to sell. Yep.

Which wasn't which

which wasn't true.

So, I mean, you get into

the condos, same thing.

Almost of a discount

that we've seen.

Over the past couple months and and

our numbers are consistent again.

And so our sells pretty much

our medium pricing. Mh.

So it's it's issuing when you

look at the the the the fifty

thousand foot view and then you

come back down into that ten

thousand foot to local. Yep. That

Orlando has been very isolated

mh compared to other markets. Yeah.

And very fortunate. Very fortunate.

Absolutely. So so if you're

if you're out there looking,

this week is not a bad time,

No. Well it it really isn't.

It could be good pull the trigger. Yeah.

I mean, seriously, reach out to Joe.

Get pre approved,

lock your rate.

You, we can definitely we can

explore lock and shop like,

the opportunities there and it

makes sense right now because

we don't know if it's gonna

stay this aggressive.

And that's the hard part is, you know,

where I think everybody is carefully...

You know, we're all carefully floating.

If that makes sense on the on our side.

It's kind of like, we we might be

able to squeeze a little bit more,

but we're ready to pull the trigger

and lock our entire, like,

lock everything Asap. You know, on

Monday, I had I had my entire team.

I I mean, I was telling my

entire team if you got something

floated lock out monday day.

Because that like I don't know

if it's gonna get

much better.

And, you know, Tuesday out

a little bit worse than wednesday

got a little bit better. Like, we're

still like, you know, it you...

It's it's it's hard

to to predict.

And that's what I telling like

our guys our sales guys.

Are like, well, maybe I...

And I'm like, guys,

unless you're watching this every

single minute, you might miss it.

And, like, I may see that drop

and then it could come right

back and you missed

it. I guess what?

Investors aren't like,

even when we see the drop,

they're holding back and they're

being, let's see what happens.

Do we get some pullback back? Because

that's what we've been seeing,

you looked in the trim reports,

like you get the down,

then you get the pull and it

comes back up a little bit.

So these investors

are are pricing up.

Like, a little bit stronger

waiting to see what happens.

Let the dust settle, then they'll

make another improvement.

That freight that improvement may

not come to the next morning.

And up by the next morning, we may have

lost everything and it maybe works.

Yeah so And that's kinda of that

comes out at eight o'clock at night.

Who you know, this bank

just did something bad.

Or oh, we revised the job numbers

and the job numbers and out

here as opposed to here We revised

the Cpi. So it's... It it...

It's difficult on your side.

You know because people want you

to have that magic crystal ball. I

wanted to. But had that why be rich.

Mike just call me barry. I still think

he's wrong. I still think he's wrong.

We'll see. We're gonna see. We're

gonna figure it out. Bye...

But Thanks so much bringing a lot of

awesome stuff this week a lot of fun.

Had some very serious

moments, but, you know,

see what kinda how the fed kinda

adjusts to have pivoted and,

you know, them responding quickly

with another bailout, not shocker,

but you, Yeah. I'm glad they did

because it did stabilize a little bit.

Yeah. We couldn't seen a much much

worse fallout than what we did.

Yeah. Yeah. We cut. So...

Alright. Everyone take care.

Enjoy the rest of your week. Happy

saint patrick's stay tomorrow.

Hey. You know what that means?

At least one. Yes. Take care.

God bless. Bye bye.

 

FIRST REPUBLIC BANK SAVED?

 

 

First Republic Bank saved with $30 Billion capital infusion

 

Months ago, in a joint statement by the Department of Treasury,

Federal Reserve, Fdic and OCC, they now today,

eleven banks have come together to make a groundbreaking deposit

of thirty billion dollars in first Republic bank.

This unprecedented show of support by some of the nation's

largest banks is a powerful testament to the resilience and strength of the US Banking system. Each of expressed their appreciation for their remarkable act of solidarity.

Question is is it enough to share up First Republic bank,

which was just a day ago downgraded by moody's.

 

This move has many on Wall Street happy, sending shares of the bank up over ten percent.

 

Fed Announces Emergency Loan Program

 

 

Fed Announces Emergency Loan Program To Stop Bank Run Contagion

 

Breaking news. The Federal reserve has just released a brand new program to ease the contagion risk of Silicon Valley Bank.

What does this mean? The Fed is worried that we're gonna continue the bank runs. To stop this, what they have done is they've created a new program, which will allow banks and other lenders to be able to pledge treasury and mortgage backed securities for cash.

What this will do will eliminate any risk or any stress for those banks and lenders to have to sell their securities quickly for loss.

That's what happened to Silicon Valley Bank.

They had people pulling their money out.

They had roughly fifty percent of their assets pledged to treasuries. And as the treasury yield went up, their bonds became worth less.

Causing them to when they sold them to sell them all for losses.

So this program is designed by the Fed to stop other banks from having the same problem. That shows me that the Fed is very worried.

So with this coming up and additional major financial news this week from the consumer price

index, coming out on Tuesday. The producers price index coming out on Wednesday and job numbers coming out again on Thursday, it's gonna be a very interesting

 

week for the bond market. Stay tuned.

 

Bond Market Rally

 

 

Bond Market Rally!

 

The bond market experienced a monumental rally yesterday, with the 10-year Treasury yield dropping nearly 0.25%. This could be a great opportunity for homebuyers who are currently in the market, as mortgage rates also dropped significantly. The average 30-year loan rate went from 7.00% to 6.76%.

 

So why did this happen? Despite the better-than-expected jobs report, news of Silicon Valley Bank's failure had a major influence on the market. Many investors fled to the safety of US Treasuries due to fear of further bank collapses, driving yields down.

 

It's a reminder of the importance of staying informed of the bond market. Developments like this can provide a great opportunity and have a big impact on mortgage rates. Don't miss out on this chance - take advantage of this now!

Orlando Weekly Housing Market Update

March 9, 2023

 

 

 

Jerome Powell Does Not Have A Problem With 2 Million More Unemployed Jerome Powell, Head of the Federal Reserve, does not have a problem with 2 million more unemployed Americans…He is going to continue to push rates higher to “get inflation under control” How would that affect current and future home sales? How will this affect the Orlando Housing Market?

Join Joseph Dionne of Appli Home Loans and I Thursday morning at ten o'clock as we look at the latest economic factors affecting the housing market.  Is now the best time to buy before the spring influx of buyers?  We will try to answer all these questions and more

Mortgage Rates Break 7% AGAIN!

 

 

Mortgage Rates Break 7% AGAIN

 

Mortgage Rates Head Back Over 7% After Powell Testimony Mortgage rates have also risen at the fastest pace in 40 years, but they are not directly dictated by the Fed. Moreover, the market adjusts expectations for the Fed Funds Rate constantly whereas the Fed only officially hikes/cuts 8 times a year. In a scheduled testimony before the Senate Banking Committee today, Fed Chair Powell stopped short of specifying a number for the next rate hike, but commented qualitatively on the need to hike faster/more than previously expected. Markets consequently upped the odds for a bigger hike in 2 weeks as well as a higher ceiling expected by the end of 2023. The average mortgage lender was already close to 7% for a top tier conventional conforming 30yr fixed scenario, and today's weakness was enough to officially push us up into the low 7's.

 

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