Banking and what it means for the market for this spring.

Banking and what it means for the market for this spring? Well, it is a big question that it seems everyone in the media seems to be putting out there for everyone to take in. With the recent banking issues with some of the banking institutions on the west coast in popularity of the Silicon Valley. Knowing that technology firms of all sizes and outlets were a part of the fallout of this recent bank closures. It will certainly rattle everyone to some degree in knowing that things are not all level and smooth as they should be in the banking world. It has had a ripple effect on the rest of the world also, now with it showing some potential issues in the European banking institutions.

What Next?

The Federal Reserve had a meeting last week to discuss the situation and how it was going to respond. The Federal Open Market Committee unanimously decided to hike the overnight lending rate by 25-basis points putting it in a range of 4.75%-5.00%. With that being said, Freddie Mac’s 30-year fixed-rate mortgage average reflected the volatility of the month by decreasing for a second-straight week, falling to 6.42%. Both of these financial institutions have reflected that due to the recent financial fall out. They are not looking for them to increase the rates as what was expected a few weeks ago.

So, what does it mean for buyers?

Banking and what it means for the market for this spring, for buyers? This means that the rates will hopefully, continue to fall some in the following months. That means that buyers can lock in a lower rate to borrow and be saving money over the long term. With the financial markets in a sort of uproar and uncertainty, it will certainly slow down the amount of changes the Federal Reserve will be considering in the following months or weeks. As buyers, you will find that will make things somewhat easier to get a locked in rate for 30-year term loans. Some lenders are working towards using some other term loans and the 10- and 15-year loans are becoming more noticeable for some consumers. Depending on what route you take, lower rates will certainly be helpful for all.

Housing market in general? 

With the recent sales increase in January & February according to the National Association of Realtors. The recent sales that happened were up a reported to be up 14.5%. That sounds good for Sellers, but that is also when the rates were a lot lower in the last months prior to the latest rate increase. So, buyers are likely to find that with the changes that the competition has increased to purchase. The last account for inventory for some markets showing that they had a 2.6 month supply available. That means the once again the buyers may have some competition to purchase. The inventory typically picks up in the spring market, but the amount of inventory may not be enough to supply the demand. Some price ranges are still being very competitive and with the demand being bigger than the supply. This will leave some buyers competing to purchase and possibly getting into the home they want.

Stability?

With all the recent events and the continued rising inflation there may be some underlying issues that will continue to cause some issues for some buyers. The market of housing and the lending industry certainly needs some stabilization but only time will tell how it all falls into place. Consumer confidence is at an all-time low but if rates continue to fall it may be enough to get consumers back on board to purchase again. Locking in lower interest rates doesn’t seem like a big deal, but over the long term it really makes a difference in the overall stability of consumers. Saving over the long term of a loan could be the difference between getting your child’s education or even your retirement situation in the end.

Looking to know what is happening in your market area? Just click the link below and place in the zip code and get a full report on what is happening in your area.

Neighborhood News (cbmoxi.com)

Keith S. Shaver

Realtor/Salesperson

my website: https://keithshaver.sites.cbmoxi.com/

304-667-3411

Thomas H Johnson, Broker of Record/174 Northridge Drive/Lewisburg WV 24901/304-645-1242