Good Tuesday AM,
Yesterday the stock market managed managed to shrug off 1,000 point loss on the DOW to finish positive. I don’t think I have ever seen that before. The bad news is that as the equity markets reversed themselves, the bond market gave back the majority of its gains. This morning the equity markets are getting clobbered again, but bonds are relatively flat. This isn’t a big surprise as the two-day FOMC meeting starts today with the Fed releasing its policy statement at 11am tomorrow. Lots can happen. The Fed could raise rates as soon as tomorrow, they could make it clear they will start in March, or they could look at the recent data and be a bit more dovish. We should all be hoping for the latter. As of now, markets are expecting some hawkish comments and bonds and stocks have already priced in a massive amount of Fed pain. I do think that the market is oversold and we may see a rally following the Fed announcement. We shall see tomorrow!
Here is a good snippet from Redfin that is worth sharing to your friends, clients, soi. The message is certainly don’t wait.
Consumers who resolved to buy a home in 2022 may have been dreaming of a reprieve from ever-climbing home prices, but so far, those dreams aren’t coming true. A new report from Redfin real estate brokerage found that median home sales prices reached a record high during the week ending Jan. 9.
The median sales price rose 16 percent for the week ending Jan. 9 compared with the same week in 2021 to $365,000 nationwide. Price increases are following the pattern of 2021 and late 2020, with supply woefully inadequate compared with demand.
“The stage is now set for the most competitive January housing market in recorded history,” Redfin’s chief economist Daryl Fairweather said in a statement. “Buyers are pouring into the market to claim a home before mortgage rates rise further as new listings slow to a trickle. The conditions are becoming increasingly challenging for first-time homebuyers, who will have to compete against more experienced buyers who are willing to do whatever it takes to win.”
Please remain safe and healthy, make today great.