Northeast Ohio
Real Estate
July 29. 2022
Happy Friday!
Hope you are doing well and had a great week!

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HOMES FOR HEROES
I'm proud to announce my new partnership with Homes for Heroes! This program allows me to give special discounts and cashback to the following heroes in our community:

Qualifying heroes include, but are not limited to current and former firefighters, paramedics, EMTs, law enforcement and all other first responders. All ranks of active military, reserves and veterans of the U.S. Army, Navy, Air Force, Marine Corps and Coast Guard. All nurses, doctors and other healthcare professionals. Also, Pre-K, elementary, secondary and post-secondary educators, teachers, professors and education administrative staff. 

If you meet this criteria (or know someone who does), first of all thank you for your service! Secondly, if you are thinking of selling or buying, please give me a call to go over the details of your potential cashback and savings!
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Real Estate Forecast

Even though national GDP contracted for the second quarter in a row and home sales have fallen for five straight months, property prices are likely to continue growing because of low inventory.

One of the most unusual aspects of the current economy is the labor market. There were more job openings than unemployed people in May—with the difference being nearly two to one, according to Bureau of Labor Statistics data. Construction job openings were at a record high in January, and these unfilled jobs point to a potential slowdown in the housing market.

Both existing-home sales and pending home sales have been falling or stagnant for months, data shows. Rising mortgage rates have combined with low inventory to exert downward pressure on the market. “Closing activity will continue to sink even more,” according to an expert. “Some [potential home buyers] don’t want to pay higher monthly rates. Others can’t.”
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Second Historic Rate Hike?
With skyrocketing inflation and mounting recession fears, the Federal Reserve made another aggressive move Wednesday, raising its benchmark rate by three-quarters of a percentage point for the second time this year to try and tame the economy. However, higher mortgage rates may not necessarily be on the horizon as a result.

“This is unlikely to do any further damage to mortgage rates,” according to an expert. “The long-term bond market on which mortgage rates are generally priced has mostly priced in all future actions by the Fed and may have already peaked with the 10-year Treasury shooting up 3.5% in mid-June.” The Treasury was at 2.8% following the Fed’s decision.

It is possible that the 30-year fixed-rate mortgage may settle down at 5.5% to 6% for the remainder of the year. Still, mortgage rates are significantly higher now compared to one year ago, which is why home sales have been falling.

The 30-year fixed-rate mortgage has doubled over the past year. Last week, rates averaged 5.54%, up from 2.78% a year ago, according to Freddie Mac.

Historically, rates are still low. It is still a great time to buy. Please let me know if I can connect you with a top lender who can assist.
Pat Barmann
216.990.5719