Are you in the market to buy a new home or thinking about refinancing your current one? If so, it’s essential to understand the current state of the housing and finance market. In this blog post, we will explore the current state of the housing and finance market, what it means for first-time buyers, and what you should consider before making your next move.

The Current Housing Market

The housing market has been a hot topic in recent years. Despite the cooling down of the market, demand for desirable properties has not diminished, and homebuyers are still paying a premium for move-in ready homes. However, not all properties are enjoying this same level of interest. Homes that need work, those in less desirable locations, and overpriced ones are not getting as much attention.

So, what can first-time buyers do to be competitive in this market? Many real estate experts suggest focusing on the local market and forgetting about what’s happening nationally. Buyers should arrange a meeting with a local Realtor, go over the comps of comparable homes that have sold, and find out how long homes stay on the market. This information can help them figure out how much to offer, what to ask for, and what to concede.

Finance Market

Mortgage rates have increased noticeably, higher than any rates we’ve seen since last Monday. This is due to the weaker shape of bonds this morning, combined with lower volume due to holiday closures in London. Additionally, the hefty slate of corporate issuance has done most of the damage early in the day. However, despite today’s increase in mortgage rates, rates are currently in their flattest trend in a long time, which is good news for those in the market.

The debt ceiling is the headline today, although it won’t get settled, and even when it does, it isn’t likely to have any immediate impact on markets at the long end of the curve. At the short end, the 2 year and lower may see some improvements. The debt problem always gets resolved, many times at the last minute like this is setting up to be. Investors are still betting (hoping) the Fed will pause its rate increases, but some strategists at banks expect an “on-hold Fed” given the rate decision pattern so far.

Economic Outlook

According to a Gallup poll, just 36% of US adults have a “great deal” or a “fair amount” of confidence that Powell will do the right thing for the economy. That’s lower than Yellen’s 37% during her first year at the helm and beneath Ben Bernanke’s lowest point in 2012. The economic outlook is not robust, and the Fed chair often bears the brunt of the blame.

While today’s news and events have been forgettable in the bigger picture when it comes to rate movement, there are still three areas that have the greatest ability to impact rates this week. These are inflation, central banks, and treasury sales. We will get key inflationary readings this week with both CPI and PPI. Expectations are for the MOM readings to rise again with the YOY numbers moving lower. Secondly, we will hear from the Bank of England, which is expected to raise their key interest rate by 25 basis points. Finally, we will focus primarily on Thursday’s 30-year bond auction.

While rates can fluctuate throughout the day, being aware of economic and political events can help you stay ahead and aware of market changes.