-
Discussions tagged with 'Mortgage-Housing and Real Estate News for Wednesday January 15th 2025'
-
GCA FORUMS NEWS UPDATE for Wednesday, January 15th 2025 on the Daily Mortgage, Housing, and Real Estate News for our viewers and members of our online community: Great Content Authority Forums: Daily National Comprehensive Overview of Mortgage and Real Estate News with special emphasis on interest rates, forecast of mortgage rates, housing forecasts, consumer confidence, consumer price index, employment numbers and forecast, national economy, bankruptcy, foreclosure, and investment news. Viewers and members of GCA FORUMS are welcomed to view GCA FORUMS NEWS National Daily News Summary for Wednesday, January 15th, 2015.
GCA FORUMS NEWS UPDATE WEDNESDAY, 15TH JANUARY 2025
We welcome you to the Great Content Authority Forums (GCA FORUMS) Daily News Update. This issue examines the most recent changes in the mortgage, housing, and real estate markets. Our peculiar focus incorporates construction costs, economic forecasts, and consumer confidence, followed by CPI reports, employment statistics, bankruptcies, foreclosures, and investment news, including so much more. Let us now turn to some specifics – the metrics influencing the U.S. economy and the housing market.
Mortgage Market Update
Interest Rates
30-year fixed-rate mortgage: average rate at 6.37%, a slight increase from the previous week.
- 15-year fixed-rate mortgage: average rate at 5.68%
- Adjustable-rate mortgage (ARM): starting at 5.30%.
Forecast on mortgage rates
- Some analysts expect that by the middle of 2025, the mortgage rates will slightly soften as inflation clenches and the Fed infers fewer hikes on the target for the year.
- If further inflation figures remain in step with the Fed’s toleration, this will provide some comfort for potential buyers, as the rates will be easy to understand.
Housing Market Forecast
National Trends
In the last quarter of 2023, median home prices available at the national level were $396.000, which implies a 2.1% growth compared to the previous year.
Sales volume:
- Home sales reduced by 2.3% in December 2024. This can be attributed to borrowing costs.
- It is seen to have some anticipated recovery performance in the spring selling season.
Inventory Levels:
- The persistent low inventory favors sellers across most markets, with a supply of slightly over 2 months.
Regional Highlights
Florida:
- Demand is notably higher in coastal regions, with particularly strong price growth in Miami and Sarasota.
California:
- Urban areas, including San Francisco and Los Angeles, still grapple with low inventory and high prices.
Midwest:
- Existing housing markets like Indianapolis and Kansas City remain popular with new entrants.
Economic Indicators
Consumer Confidence Index
- With January’s Consumer Confidence Index now at 103.2, this suggests a more positive perception of the job market and economic prospects than a few months ago.
Consumer Price Index (CPI)
- The inflation rate highlighting the gap between the price of goods in the December 2023 and. the December 2024 quarter has grown to 0.2%, bringing the total annual inflation rate to 2.3%.
- This is, however, closer to projections made by the Federal Reserve.
- Increased energy spending and moderate increases in housing expenses are some of the factors contributing to the CPI increase.
Employment Numbers
Unemployment Rate:
- The rate was unchanged at 4.1% in December.
Job Gains:
- Economically, 256,000 jobs were created this month, and there was significant expansion in construction, healthcare, and business services.
Bankruptcy and Foreclosure Trends
Bankruptcies
- Due to reduced inflation and a strong job market, business bankruptcies continue to be at a fairly constant level.
- However, there have been some increases in individual bankruptcies as many people adjust to the increased cost of borrowing.
Foreclosures
Putting your home on the market:
- The rate steadily increased to 1.3% in Q4 2024, primarily because of rising interest rates and affordability issues.
- High-cost states such as California and New York have the highest foreclosures.
Investment and Real Estate Opportunities
Investing in real estate
- The demand, which had previously been suppressed, is now pushing up the value of multifamily rental properties.
- The short-term rental market continues to thrive in popular holiday spots.
Market Focus for 2025
Buyers:
- If rates seem to rise further, try to lock in rates early.
Sellers:
- Low supply and high demand make it advantageous to sell the property now, so take the deals.
Investors:
- Concentrate on cost-effective rental properties and regions with rapid population increase.
What It Means for GCA FORUMS Members
Key Takeaways
Interest Rate:
- It is clear that rates are still high and have likely stabilized for now.
- Speak with lenders about locking in a fixed rate in the future.
Housing Shortage:
- Despite inventory shortages, developing a strategy can help buyers and investors.
Economic Forecast:
- A strong job market paired with low inflation is a good area for real estate movement.
Remain Updated and Active
We would like to encourage all the clappers and GCA FORUMS members to contribute to the discussion by providing comments or inquiries regarding changes within the mortgage, housing, and real estate industry. Your talk with us goes a long way in aiding us in creating an informed community.
Thank you for joining me for this update. Please come back tomorrow for more news, expert opinions, and analysis.
Viewing 1 of 1 discussions