With 33% of all homes currently listed for sale being sold above the original asking price, home prices have risen 2.0% in just the last 60 days and are forecast to end the year up 4.3% overall. Moreover, economists are calculating an average 3-5% appreciation rate each year for the next four years which equates to an average compounded 21% home price increase between now and 2028.    Something big to think about.

And speaking of increases, Oil & Energy costs spiked 10% this month, which will pull inflation numbers further north.  Consequently, the earliest timing of a Fed rate cut currently sits at September 2024.  At the same time, Jobless Claims have also risen 10%, which could indicate a slowdown in the labor market. Conversely however, there are increasingly more new positions created every single month, and more job openings now than at any time in recorded history.

And as a heard up, you will see interest rates advertised lower than the advertised “par” rate.  Those lower rates are achieved by paying discount points. It will typically take you about four years to recover the cost of those extra fees.  Sometimes it makes sense to pay a little bit because the recovery time is much quicker.  If you think that interest rates will not improve over the next 48 months, then let’s buy down that rate!  But if you believe that at some point over the next four years interest rates will improve and we can take advantage of a no-cost refinance, let’s be judicious with your hard-earned money.