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This week: I overdid it last week with a super-sized recap of September, so I’m keeping it short and sweet this week.
Weekly inventory plunged below 3,000 again.
|Oct. 8-14||Prev 4 Week Avg.||% Change||Oct. 1-7|
|New Pending Sales||769||772||-0.36%||753|
|30 Year Fixed Mortgage||3.05%||2.91%||4.9%||2.99%|
New listings keep sliding faster than new pendings. That said, I’m still hearing reports of buyers falling out of escrow at a higher than usual rate.
That may explain the slide in new sales this week, although this could also just be a timing nuance that bounces back next week.
Mortgage rates bounced higher as expected. They settled down on Monday and there is a sliver of hope circulating that bonds may already be pricing in the future risks for inflation and Fed tapering. That seems like wishful thinking to me, but we’re in uncharted waters so every theory is worth at least considering.
In big news that just dropped yesterday, Zillow just put a temporary kibosh on iBuying as it states it doesn’t have the operational capacity to take on more. That means all active escrows with Zillow Offers are likely getting canceled or delayed, which presents a big opportunity for savvy buyers in the short term.
And if this short update is leaving you wanting more, check out last week’s exhaustive recap of September and look ahead.
In The News
- Mortgage originations are expected to drop 33% in 2022.
- Zillow has to pause iBuying due to operational constraints.
- San Diego has one of the highest inflation rates in the country.
The Week Ahead
- Earnings reports continue to be the major economic news on tap for the week ahead. Banks started off earnings seasons with a bang last week, exceeding expectations for Q3 and also increasing their future outlook. This helped push mortgage rates higher. Banks don’t have the same supply chain battle to fight, however, so it will be interesting to see how the rest of these reports play out.