Do buyers finally control housing market?

As noted last week, rates may rise about 0.25% at certain intervals as we move through early 2019. We’ve got a Fed rate decision Wednesday and the January jobs report Friday, plus markets perhaps feeling OK about the government starting up at least for a bit.

So rates may get more wild next week after holding at super-low 4.5% range most of this month. Many pros predict the economy may weaken later in 2019, and rates will drop if that happens, but if you’re buying a home now because of family/school plans, the timing might be great. Why?

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Because if you look at this chart of existing home sales dating back to 1970 from Matt Graham at Mortgage News Daily, you can see how home sales are steady over the long haul despite all the alarmist headlines since NAR release December existing home sales last week.

Flippers aside, investing in a home is a long game, and the long trend looks pretty steady.

So right now you have rates as low as they were since last April (and down 0.5% from 7-year highs in October/November), and softer home sales mean it’s more of a buyers market. Fewer bidding wars in many markets, more sellers willing to make deals.

Matt goes deeper in links below, including an important explanation of the long game on home prices in the first link. Check it out.

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Reference:

Housing Market Weakness Depends On Perspective (Mortgage News Daily)

Mortgage Rates Could Be More Volatile This Week (Mortgage News Daily)