QUOTE OF THE WEEK… “Worry is like a rocking chair: it gives you something to do but never gets you anywhere.” –Erma Bombeck, American humorist
INFO THAT HITS US WHERE WE LIVE … Well, FOMC Minutes from their September meeting revealed the Fed isn’t going anywhere with rates because they’re worried about the economy. Yeah, yeah, Fed Chair Janet Yellen said, “Our decision does not reflect a lack of confidence in the economy.” But then she expanded on this by saying the Fed preferred to take a more cautious approach to see if current growth would continue. Kinda sounds like she’s worried that it won’t. Nonetheless, the minutes also showed a cadre of Fed members pushing for a rate hike, so many economists feel there’s an increased chance for one in December. Our turn to worry.
One worry that’s going away is whether Millennials will ever have a real impact on the housing market. According to Freddie Mac’s October Insight, this latest and largest generation of homebuyers will actually be key to improving the homeownership rate, which has declined for a decade. Read More…Market Update Santa Fe Las Campanas for the Week of Oct 10, 2016
For the week of October 10, 2016 – Vol. 14, Issue 41
QUOTE OF THE WEEK… “The future ain’t what it used to be.” –Lawrence Peter “Yogi” Berra, American professional baseball player, manager and coach
INFO THAT HITS US WHERE WE LIVE … The future certainly isn’t as upbeat as it once was, but at least housing-wise, it seems to be moving in the right direction. New data from realtor.com says that following a summer housing market that saw both high demand and rising home prices, we could experience the hottest fall sales in a decade. Their chief economist explained: “House hunters who were shut out this summer because of fierce competition could fare better this fall, with more opportunities to buy.” He adds, “pent-up demand remains substantial as buyers seek to get a home under contract while rates remain so low.”
A research firm projects the third quarter will be the best for mortgage lending since Q4 of 2007. Going forward, a blog by the National Association of Realtors (NAR) notes that sales should heat up even more next year, reaching 6 million units, up from their latest forecast of 5.8 million units for 2016. This post reported that the Mortgage Bankers Association, Fannie Mae and Freddie Mac all had similar predictions. Here’s the NAR’s explanation: “A huge wave of Generation Y-ers [aka Millennials], who have delayed home buying, are emerging into their key buying years. They are predicted to keep home and condo sales strong well into 2020, according to economists.”
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