Interestingly enough, buyers are finally starting to take action. The number of loan applications taken in the first weeks of December is up 22% compared to the preceding two weeks here in San Antonio. Some of that increase can be attributed to the “last deals of the year” for builder close outs, but hopefully it is an indication that buyers are starting to take notice of the increased inventory and lower rates.
Financially speaking, inflation concerns headline the news these days. The Fed wants to fight off a recession (predicted as a 50/50 chance by former chair Alan Greenspan) with additional rate cuts but in so doing, risks pushing inflation even higher. The Fed, in its 3rd consecutive meeting, lowered interest rates last week to 4.25%. The last time this happen was in 2001. This Friday, the Personal Consumption Report comes out giving the best read on inflation. If CORE PCE remains under 2%, further rate cuts are likely. A reading above 2% could spell trouble.
Senior Loan Officer
Legacy Mutual Mortgage