First week of August and we get the July jobs report on Friday. Not likely to be a great number, but the FED has dismissed all the jobs misses so it shouldn’t be a surprise, unless the FED sees something new. I do think the inflation report next week is also likely to be a terrible number, but once again, the FED will just dismiss it with its new favorite word, “transitory” and keep right on ignoring the inflation we all see.
Housing is another issue, prices continue to rise across the country and in many areas, it’s more than double digit increases year over year. While activity has slowed down a little in some areas, volume of both home sales and demand remains strong. Fueling much of that is the insane rise in rents. Last month we saw a 2% increase in rents, leading to more than a 10% increase year over year. With some markets seeing rental availability challenges at, or worse than listing inventory!
Yes, mortgage applications were down last week for both purchases and refinances, but levels are still strong, and opportunities are plentiful if you know where to look. While some companies are panicking to low origination volume, many I work with are well ahead of last year’s numbers and still managing 70% purchase to refinance balance for the year!
With many across the country beginning the trek back to school, we may see a brief lag in activity but be prepared for a spike in the action within two to three weeks of the kids going back to school and functional obsolescence of current homes forces a change! Staying committed to your plan and the focus of relational business practices will continue to help you out pace your competition!
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