First Team’s Weekly Mortgage Watch (July 22nd, 2018) This Week Highlights the Following Updates:
- Mortgage rates appear to have comfortably settled into the summer sun with a balance keeping them from moving significantly in any direction.
- The economy is humming along, which would usually press rates higher. However, slightly higher returns on US debt are nudging foreign money to move into US Treasuries, which helps press rates downward.
- Both Retail Sales and Industrial Production posted solid 0.5% increases. While chatter around trade wars is making some analysts nervous, the current level of tariffs is expected only to have a small impact.
- Of course, if the President’s bluster about significantly expanding tariffs comes to fruition, then we’ll see more economic impact.
- This week starts with a focus on housing. Both New and Existing Home Sales reports are due. As the industry has not expanded at the same rate as the overall economy, the data has less impact than it did before the Great Recession.
- The big news of this week may be a greater-than-4.0% GDP estimate for Q2. If that number comes in short, rates are unlikely to move upward very much at all.
Go FSBO and Find Yourself With Less Cash
While many people wonder whether using an agent is really worth it, an analysis in the 2017 Profile of Home Buyers and Sellers by NAR shows a vast difference. Nationally, FSBO homes sold at a median price of $190,000, while agent-assisted sales garnered $250,000. The variance was even greater if the seller personally knew the buyer, with those sales coming in at $160,300. On average, FSBO sales resulted in an average $60,000 to $90,000 lower sales price.