One of the recent news items that impacts Real Estate is the announcement that the Feds are cutting interest rates to as low as 2%. Sighting “sagging business confidence, concern about trade disputes and tariffs, and slower economic growth” the move was made in an effort to get out in front of a possible recession.
Surprisingly, The Fed has not cut interest rates since 2008 (seems like just yesterday). Mike Fratantoni, chief economist at the Mortgage Bankers Association says, “The statement signaled that the Fed will continue to be data dependent, and that this cut does not lock them into a path of future rate cuts—but we expect they will cut rates once more this year and once in 2020.”
Of course, lowering the cost of money can be a boon to big corporations and businesses, but oftentimes has little if any effect on mortgage rates. In fact, the current 30-year fixed rate of 3.75% remains unchanged. That could change in the future but not likely. Your interest-earning accounts may suffer a bit, though.
To read the article in its entirety, click here .
And while we’re on the subject of economic news as it relates to Real Estate, according to the latest S&P CoreLogic/Case-Shiller indices rise in home prices slipped just slightly year-over-year from April’s 3.5% to 3.4% in May. Indeed, not a significant difference, but the increase in the country’s 20 major markets was a softer 2.4%. Nuances from city to city can be significant though, as Atlanta and Las Vegas, for instance are chugging along at 4.7% and 6.4% respectively.
Perhaps most unexpectedly, Seattle experienced the first negative year-over-year change reported in a major city in many years. Could this be a trend that will spread to other cities?
Not likely. “The U.S. housing market cooldown continued in May, signaling the longest period of price growth anemia since the Great Recession,” says Ralph McLaughlin, deputy chief economist and executive of Research and Insights at CoreLogic. “However, coupled with the recent drop in mortgage rates and incomes rising faster than inflation, the transition to a more balanced market should allow the industry to enter a period of sustainability into the foreseeable future.” In other words, nothing to worry about quite yet.
To read the entire article and see where your city ranks among the top 20, click here .
Let’s get a little closer to home (my home) and take a look at some Featured Properties for August. In case you missed last month’s Newsletter, this new format allows you to peruse more offerings and in categories more specific to what you may be interested in. Please enjoy the following selections in Vacation Rental Condos over and under $1 million, and Single family Homes over and under $1 million. As always, if you have something specific in mind, don’t hesitate to ask.
Vacation Rental Condos under $1 million
Vacation Rental Condos over $1 million
Single Family Homes under $1 million
Single Family Homes over $1 million
Click here for complete July statistics
We are getting our fun summer weather here on Maui and the first two “Tropical Storms” large enough to get named just passed us by, one to the south, one to the north. Always a little stressful these times of year but land masses (islands) above and below seem to keep Mother Maui well protected. I will be heading to sunny (and HOT!) Scottsdale next week to help celebrate my best friend’s mom’s 104th birthday. I think of her as my Hanai mom—a term in Hawaiian that means “adopted” of sorts—not of blood but a special kindred spirit. She is truly an amazing woman. The Personal Trainer she sees three times a week would no doubt agree.
Mahalo for checking in on my Monthly Newsletter, and may your days be warm and your nights cool.
A hui hou,