The reduction of the FED rate The expectations grow as employment alleviates and the mortgage interest rate drops

A combination of factors this week will have all eyes at the meeting of the Federal Reserve on September 16-17 and whether there will be a decrease in interest rates. Firstly, inflation data was mixed. Although producer prices in July fell after a significant increase, consumer prices fell higher in August. However, I do not expect that this will derail a reduction in the federal fund presentation.

The Fed has a double mandate. The two priorities are full employment and price stability. Although the prices remain thornier, full employment is the side of the mandate that will probably bear more weight during the next meeting, given the soothing unemployment rate, a slower pace of the assumption and still limiting rate policy. A Uptick in unemployed claims on a high of approximately four years Is just another support point.

This week’s mortgage interest fell sharply to 6.35% for a 30-year permanent housing loan. The rates are now for the first time in 11 months lower than 6.5%. When the mortgage interest rate fell in the low 6% last year, we saw a shot in the house sales in the coming months. Data already indicates a significant increase in mortgage applications. The sale of living will probably follow, but this will not be a total unlocking for housing: most homeowners still have outstanding mortgages with rates below 6%.

Higher mortgage interest has been made an important contribution to a slower housing market, but in August a lower housing market in August lowered lower due to the concern about work and a more modest house price prospects.

The REALTOR.COM® August Housing Trends Report Reports aligning, which shows that the jump has yielded the prices for records in active entries in the past year.

Although the national market has dealt with the balance between buyers and sellers, the report reveals striking regional variation: 7 of the 50 largest markets are already in the market area of ​​the buyers, 23 are in balance, while 20 still promote sellers.

With some markets on the buyer’s territory, weekly data showed that sellers wanted less enthusiastic on the market. Newly mentioned houses fell nearly 2%, the largest annual decrease since January.

There are still many sellers’ markets, especially, especially in the northeast and midwest, regions that have a lock on our most popular market list. In the 20 hottest markets, the more robust demand from buyers helped to stimulate the mention prices by 3.6%, although they were nationally.

But also in the most popular markets, the Roundup subways are priced under $ 300,000.

Finally, with more than $ 12 trillion of real estate value that is exposed to severe or extreme climate risks due to floods, orcanes driven wind and natural fire, consumers have difficulty obtaining and renewing insurance for homeowners, and 3 in 4 believing that it can be inviolable.

This is one of the various reasons why I expect that climate risk information is growing important for consumers looking for a house and homeowners who want to make smart investments to limit and defend risks.