Mortgage-backed securities are sitting at the highs (low rates) seen a month ago and hopefully tracking toward the previous 2025 highs that we saw toward the end of October and September. Each year over the last five, the market shifted dramatically in January and we won’t know for a few weeks whether that’s to our advantage or detriment. Stocks and gold have been at all-time highs all year long. For the sake of my investment accounts, I hope that continues. But typically, higher stock prices means higher interest rates, and stocks fall, so interest rates. So for the sake of our business, I’m kind of betting against the stock market right now. Just don’t tell my 401(k) that.
Case-Shiller this morning showed that home prices across the country increased 0.4% in October, which is higher than expectations, and marks the third month in a row that prices have been appreciating nationwide. The graph here below shows the inversely proportionate relationship between interest rates and home sales. The lower the rates, the higher the number of sales, and vice versa.
While we’re on the subject of home sales, a few weeks ago ABC reported that the home turnover rate is the lowest it’s been in 30 years. I know I’ve certainly felt that in my own business, which is dependent on past clients purchasing another home, and can affirm (As my bank account) that it’s not happening as frequently as in years past. ABC went on to say that their research shows average first time homebuyer is now 40 years old!
