Mortgage Monday Newsletter | May 30th, 2022
Welcome to the Mortgage Monday Newsletter! Each week I will give you 1 Industry Insight, 1 Article to Read, and 3 Quotes to Ponder. I hope you enjoy, and if you do, feel free to pass it along to your friends!
Industry Insight
The Fed is going to most likely hike rates rates another 50 basis points on June 15th, and possibly again in July. However, it is unclear if the Fed will stay consistent with their policy if the economy starts to slow down.
In housing news, new home sales were down 17% in April with year-over-year sales down 27%. Why the big decline? Higher rates and higher prices definitely play a role, but uncertainty is a factor as well.
It normally takes 6 months to build a home, but today it is a longer process with little certainty on prices and completion times. People rarely make moving plans a year in advance, and with rising interest rates and fears of recession, not many people are willing to make that kind of investment with a lot of unknowns.
The market is closed today in observance of Memorial Day, but we did see a nice bump in the right direction late last week. We are unsure if those gains will last., but of course we will take the positives anytime we can get them in this market!
Let me know if you have any questions on the market. Have a great week!
Article to Read
A Tale of Two Londons by Nicholas Shaxson
Quotes to Ponder
“If you care too much about being praised, in the end you will not accomplish anything serious. Let the judgment of others be the consequence of your deeds, not their purpose.”
– Leo Tolstoy
“Faced with the choice between changing one’s mind and proving there is no need to do so, almost everybody gets busy on the proof.”
– John Kenneth Galbraith
“Where to focus:
For the beginner, execution. For the intermediate, strategy. For the expert, mindset.”
– James Clear