The Federal Open Market Committee (FOMC) met this week and raised interest rates by another 0.75%
- This brings the Federal Funds Rate to 3%-3.25%
- Core CPI came in higher than expected in August at 8.30% causing the FOMC to enact another rate hike
Here’s a quick summary of current rates:
- Online Savings accounts ~ 2%
- 1 yr CD rates direct from banks ~ 3%
- 1 yr CD rates from brokerage firms (Fidelity, Vanguard, Schwab, etc) ~ 4%
- Average 30 yr. fixed rate loan ~ 6.30%
- Average 15 yr. fixed rate loan ~ 5.45%
- Average HELOC variable rate loans ~ 6.25% – 8%
As of 9/23/2022 the S&P 500 Index is down (19.62%) YTD; Dow Jones Industrial Average is down
(16.99%) YTD
- The S&P 500 Index has declined over (10%) in the past 30 days
- A bear market is defined as a decline of 20% or more
The real estate market is feeling the pain – it’s a buyer’s market!
Inventory is up almost 30% More houses available, fewer buyers, room to negotiate, seller concessions and
decreased overbidding.
- Home prices are slightly decreasing
- The median US home price fell 0.77% – not much but the first drop in 3
yrs and the largest one-month decline in 11 yrs!
Construction spending (ie remodel/new home build) fell 1.50%
Listing prices should be reflecting the fair market value – not a lowball price to encourage overbidding