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This Week In Real Estate – December 10, 2023

Central Oregon Real Estate - This Week In Real Estate

This Week In Real Estate – December 10, 2023.

CoreLogic released its Q3 2023 Homeowner Equity Report, this week in real estate, unveiling a notable year-over-year surge in home equity, which rose by nearly seven percent, equating to a substantial gain of $1.1 trillion. This elevates the cumulative home equity for mortgaged properties across the United States to $16.97 trillion. Mortgage interest rates have experienced a consistent decline for six consecutive weeks, marking a nearly four-month low, as indicated by data from Freddie Mac. Specifically, the 30-year fixed-rate mortgage averaged 7.03 percent, showcasing a decline from the preceding week’s average of 7.22 percent. This downward trajectory follows a previous peak in rates recorded in October, with recent declines attributed to the buoyancy in bond markets, reflecting expectations of the Federal Reserve concluding its robust measures aimed at curbing inflation. In other economic news, newly released wage and labor statistics signal a trend toward a moderating market. November witnessed an addition of 199,000 jobs to the economy, concurrently leading to a drop in the unemployment rate from 3.9 percent in October to 3.7 percent. Year-over-year, wages grew at a 4.0 percent rate, dropping 1 percentage point from the previous year. This continued the declining trend in the pace of pay increases, representing the lowest year-over-year wage gain since June 2021. This deceleration suggests a potential alleviation of inflationary pressures in the market. Below are a few newsworthy events from the first week of December that influence our business:

CoreLogic: U.S. Home Equity Growth Rebounds In The Third Quarter Of 2023.

CoreLogic released the Homeowner Equity Report (HER) Thursday for the third quarter of 2023. The report shows that U.S. homeowners with mortgages (which account for roughly 63% of all properties) saw home equity increase by 6.8% year over year, representing a collective gain of $1.1 trillion and an average increase of slightly more than $20,000 per borrower since the third quarter of 2022. The total amount of U.S. home equity for mortgaged properties now amounts to $16.97 trillion. Slow home sales activity is resulting in fewer mortgage originations, affecting home equity and improving the nation’s overall loan-to-value ratio, which stood at 42% in the third quarter. Despite dips in the housing market, the average U.S. homeowner with a mortgage still has more than $300,000 in equity since the purchase date. Full Story…

Mortgage Rates Drop To Lowest Levels Since August.

Mortgage rates continued to fall this week, averaging just over 7%. It is the sixth straight week rates have dropped, undoing seven previous consecutive weeks of increases. The 30-year fixed-rate mortgage fell to an average of 7.03% in the week ending December 7, down from 7.22% the week before, according to data from Freddie Mac released Thursday. Mortgage applications increased for the fifth consecutive week, ending December 1, according to the Mortgage Bankers Association. “The market outlook continues to improve as 2023 closes, with mortgage rates now down almost a full percentage point from their recent highs a few months ago,” said Bob Broeksmit, MBA’s CEO. Full Story…

November Jobs Report Is “What A Soft Landing Looks Like.”

The November jobs report should be a welcome sign for investors betting the US economy isn’t on the verge of tipping into recession. Data out Friday from the Bureau of Labor Statistics showed the US economy added 199,000 jobs in November while the unemployment rate ticked lower to 3.7%. Friday’s jobs report is also the latest data showing the labor market isn’t cracking, but normalizing, something the Federal Reserve has been clamoring for since it began its rate hiking cycle. In sum, the data paints a picture of a labor market coming into “better balance” rather than one suggesting the economy is on the verge of tipping into recession. “We maintain our call for the Fed to start cutting rates by mid-year, but it is contingent on inflation continuing to trend lower and further weakening in economic activity,” Nationwide chief economist Kathy Bostjancic said Friday. Full Story…

Originally compiled & posted by President &CEO, Melanie Weidenbach on the Berkshire Hathaway HomeServices Northwest Real Estate company blog.

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Mitch Darby

I am a real estate broker, architect (both licensed in the State of Oregon), and life-long Oregonian. If you are looking to buy or sell, I can help! I have Northwest Knowledge and am proud to be associated with Berkshire Hathaway HomeServices - Real Estate's Forever Brand!

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