You are currently viewing Market Snapshot 6/11/24 – Good Tuesday Morning

Market Snapshot 6/11/24 – Good Tuesday Morning

Good Tuesday morning from your Hometown Lender,

There is not any data today although there was a 10-yr note auction that went very well, so markets take a breath before the onslaught tomorrow. It is not just the Fed meeting that is the big news tomorrow although it is the largest event by far, we also get the CPI report that will (likely) influence The Fed’s decision. Investors will obsess over whether Federal Reserve officials’ pencil in one or two interest rate cuts this year. For policymakers, difficult decisions and looming divisions over whether and when to cut interest rates are a problem for later—not right now. Instead, the fixation on the quarterly rate projections obscures remarkable cohesion among rate-setters over their wait-and-see stance. I do not recommend floating into tomorrow. It is a big risk as we saw with last Friday’s jobs report.

No news so I have lot of quick hits for you today.

In May, there were 35.2% more homes for sale than a year earlier. Every region in the U.S. saw gains in May.

Metros with Biggest YoY Increases in New Listings

  • San Jose, CA (39.8%)
  • Phoenix (22.4%)
  • San Diego (21.2%)
  • Denver (18.4%)
  • Las Vegas (18%)

Do Renters Plan to Buy?

34% of renters plan to continue renting and nearly half of all renters (49%) said in a recent Forbes Advisor survey they are renting because they can’t afford to buy a home. 

However, most renters do plan to buy in the near future, with 11% saying they plan to buy in the next 12 months, and 55% saying they have plans to buy, just not in the next year. 

These are the top three reasons renters cited for not buying something sooner: home prices (56%), a lack of down payment (42%), and high interest rates (29%). 

The U.S. Economy Continues to Be On Strong Footing, Jobs Report Shows

U.S. job growth burst past expectations last month even as the unemployment rate edged up to 4%, presenting a mixed view of a labor market that has generally been cooling while staying hotter than many anticipated. The one caveat in Friday’s otherwise-strong report was the unemployment rate, which ticked up to 4% from 3.9% in April. Still, 4% is an enviable number. The unemployment rate has been at or below 4% for 30 months, something that last occurred during the Vietnam War in the late 1960s and the Korean War in the early 1950s. Overall, analysts said that the hiring boost highlighted the continued resilience of the U.S. economy, which has defied expectations as businesses keep hiring, wages keep rising and consumers keep spending in the face of steeply higher borrowing costs and persistent inflation. Plus, some prominent economists are arguing for a higher target inflation rate than 2%, and there may be limits to this resilient economy. And consumers are paying higher prices for everything from olive oil to cocoa to coffee, mostly because of extreme weather.

Why the Recession Still Isn’t Here

The recession, predicted by business executives, economists and investors, refuses to show up. Of course, just because everyone who predicted a recession has been wrong doesn’t mean they won’t eventually be right.

The U.S. Department of Veterans Affairs (VA) has announced in Circular 26-24-14 that eligible veterans, active-duty service members, and surviving spouses who use VA-guaranteed home loan benefits can pay for certain real estate buyer-broker fees when purchasing a home.

Stay safe and make today great!