***Here is some interesting info from one of our favorite local lenders.
One interesting result of mortgage rates being the highest they have been in 20+ years is that the number of free and clear homes has grown. Of those that own homes, nearly 40% are free and clear. That’s a much larger percentage than I was thinking but when weighing paying a 7% mortgage vs. just paying cash, many are opting for cash if they have the capacity to do so. Fed Chair Powell is chatting with Senate members today and his prepared statement leads us to believe a September cut will be HIGHLY probable IF we can get another cool inflation reading this week in CPI/PPI and then again next month. The unemployment rate ticking higher to 4.1% has raised some eyebrows and taken some of the focus away from the inflation numbers. In an ideal world, the Fed would like to have the inflation numbers at their target rate before cutting rates but the unemployment rate may push their buttons just enough to prompt a rate cut. Mortgage bonds are at a tough level they have not spent a lot of time over the past quarter. We expect a mixed bag with the inflation numbers on Thursday unless we get a big surprise lower so, locking around here is a good call.
Rate Trend: Sideways along resistance
Bad Dad Joke of the Day: As a kid I built a wooden car, with a wooden engine, wooden doors, wooden wheels, wooden seats, and to test it I put the wooden key into the ignition. It wooden start.
