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"How Much Buying Power Could Prices Cut?"
Budget Pressure From Prices and Jobs
Home shoppers may feel squeezed from both sides today. Home prices are still moving up in the real world, even when adjusted reports look flat, and stronger hiring demand could keep mortgage rates from easing. For buyers, that can trim buying power. For homeowners and refinancers, it can affect the payment options worth reviewing.
Home prices kept pushing budgets
- S&P CoreLogic Case-Shiller showed home prices rose 0.8% before seasonal adjustments, faster than the prior 0.7% increase.
- FHFA also showed a 0.7% unadjusted gain, while its adjusted reading slipped 0.1%, which can make current price pressure look softer than it feels.
- Apartment List reported asking rents rose 0.4% from the prior month but stayed 1.2% below a year earlier, with vacancy at 7.2% and average lease-up time at 30 days.
In plain terms, homes are getting more expensive now, while rent data suggests inflation relief may take longer to show up.
Job openings added rate pressure
- The BLS job openings report came in above estimates at 7.6 million, roughly 300,000 higher than the 7.3 million forecast.
- Open positions increased most in leisure and hospitality, including accommodation and food services.
- The hiring rate held at 3.3% (Illustrative example only - not an offer or rate available), and the quit rate stayed at 1.9%, showing workers are not changing jobs quickly even as demand for labor stays firm.
A stronger labor market can keep inflation pressure alive, which can make mortgage rates harder to bring down.
Mortgage rates edged up slightly
- After the housing and labor data, investors sold some government bonds during end-of-quarter trading, which pushed borrowing costs a bit higher.
- Mortgage News Daily's national rate index put the 30-year fixed national average at 6.54%, up 0.02%age point from the prior day.
- With more jobs data due soon, many wholesale lenders may price cautiously, and the bond market early close in 2 days could reduce flexibility late this week.
The rate move was small, but firm job data and a shorter holiday trading week can still affect timing for buyers and homeowners comparing options.
Questions and Answers
Do rising home prices mean I should speed up my plans?
Not always, but it does mean your target price range may change faster. If you are buying soon, it helps to review your budget, down payment, and loan choices before the next home catches your eye.
Why do job openings matter for mortgage rates?
When employers still want to hire, markets may worry that inflation will stay stubborn. That can push bond-market borrowing costs higher, and mortgage rates often follow.
Final Takeaway
If you are buying, this is a good time to test your budget against current home prices and current mortgage rates. If you own a home and are considering a refinance, strong job data may delay rate relief, so it helps to compare payment options now instead of waiting for perfect conditions. Get a personalized mortgage strategy review from the Homeseed Lending Team. As your mortgage broker, we shop 175+ wholesale lenders to compare options for buying or refinancing, talk through timing, and help you choose what fits your payment and timeline.
Homeseed Lending Team, powered by Barrett Financial Group, L.L.C., NMLS #181106. Licensed in AZ, CA, FL, NC, NV, OR, TX, WA. Equal Housing Opportunity. This article is for informational purposes only and does not constitute an offer to extend credit.
This blog post is intended for informational purposes only. It does not constitute financial advice, an offer to extend credit, or a commitment to lend. Mortgage rates, program guidelines, and qualification requirements can change at any time and may vary based on credit, income, assets, location, and property type. Always consult with a licensed mortgage broker to review your personal situation and available options.
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