Recording Breaking Home Prices are here! | 1-Minute Market Update w/ Martin Perdomo

Is your dream home slipping through your fingers as interest rates and prices soar to dizzying heights? This week's real estate market update pulls back the curtain on the Federal Reserve's latest maneuvers and what it means for your aspirations of homeownership or investment. As we synthesize the latest housing market data, you'll discover insights into the 14% plunge in home loan applications from last year and a record-setting median house price that might just have you second-guessing that mortgage application. With a fine-tooth comb, we analyze the implications of the Fed's decision to keep interest rates steady and slow down their asset sell-off, providing a lifeline of comprehension in a sea of economic complexities.

Peer into the heart of the current real estate climate with us, where renting is becoming the silver lining against the backdrop of mortgage payments hitting an all-time high. We navigate through the maze of new listings on the market and decode the statistics, all while dissecting how the timing of this year's Easter might be playing tricks with the data. From the rollercoaster of interest rates to the influx of new homes up for grabs, we've got the scoop that could influence your next big financial decision. No sugar-coating here, just the raw, unvarnished truth about the state of real estate—whether it's music to your ears or a cautionary tale, you'll want to stay tuned.

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Transcript

Speaker 1: 0:28

The feds just announced some changes that might shake up the housing market. Let's find out in this week's real estate market update, but before that, let's take a look at this week's housing market data. Looks like fewer folks are applying for home loans this year compared to last year. Applications are down 14%. There was also a small dip of 2% applications from last week. This makes sense. The 10-year treasury is at a 25-year high this week at 4.6%.

Speaker 1: 1:04

It is crazy out there, with these interest rates and these prices. People are looking at houses online as much as they were last year. Searches for homes for sale on Google are down 14% compared to this time last year. There wasn't much change. This week, though. Searches were pretty flat.

Speaker 1: 1:23

The price of buying a house just hit a new record high of $383,725. That's a bigger jump than we've seen almost all year, except for those two crazy months in February. In other words, houses are more expensive than ever before. Homes are getting expensive. The median price to buy a house in the US now is around $383,188. That's really close to the most expensive it's ever been Only $73 lower. Guys, this is nuts, as people's incomes cannot keep up with these house prices. Along with these interest rates. These payments are bananas right now. The median asking price for a house just hit a new all-time high of 420,450. Prices have been going up super fast the fastest since last september.

Speaker 1: 2:24

Looks like the housing market is still pretty strong right now. Renting, though, might be a cheaper option right now, with the median monthly mortgage payment has hit an all-time high of $2,890. That's a lot to swallow, especially with interest rates going up, up and upwards of 7%. Millions of houses are hitting the market. There are 15.2 percent more new listings compared to last year. This is the biggest jump in listings in almost three years. However, there's a little asterisk here. Since Easter fell on a different week this year compared to last year, it might be inflating the numbers just a tiny bit. Puns are still taking about the same amount of time to sell compared to this time last year. In other words, the market isn't moving much faster or much slower.

Speaker 1: 3:28

So the Federal Reserve decided to hold off on raising interest rates this week. But that's not all. They also said they're going to slow down selling off a bunch of stuff. Here's a quick breakdown. Interest rates are staying put for now. This means borrowing money, like for a car, might not get any cheaper anytime soon, but it also won't get more expensive. Qt slowed down. Remember how the feds was trying to cool down the economy by selling things. They're going to ease up on that a bit. This could be good for stocks and stuff like that. Investors are quite happy about that. So why the slowdown, you may ask? Well, it's because messing with the money supply can be a bit tricky and the Feds don't want a repeat of what happened in 2019 when the banks had a mini meltdown. This has been your weekly real estate market update. I'll see you guys next week. Peace.