Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 7.10 percent.
“The 30-year fixed-rate mortgage surpassed 7 percent for the first time this year, jumping from 6.88 percent to 7.10 percent this week,” said Sam Khater, Freddie Mac’s Chief Economist. “As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.”
News Facts
- The 30-year FRM averaged 7.10 percent as of April 18, 2024, up from last week when it averaged 6.88 percent. A year ago at this time, the 30-year FRM averaged 6.39 percent.
- The 15-year FRM averaged 6.39 percent, up from last week when it averaged 6.16 percent. A year ago at this time, the 15-year FRM averaged 5.76 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website
Existing-home sales slipped in March, according to the National Association of Realtors®. Among the four major U.S. regions, sales slid in the Midwest, South and West, but rose in the Northeast for the first time since November 2023. Year-over-year, sales decreased in all regions.
Total existing-home sales[i] – completed transactions that include single-family homes, townhomes, condominiums and co-ops – receded 4.3% from February to a seasonally adjusted annual rate of 4.19 million in March. Year-over-year, sales waned 3.7% (down from 4.35 million in March 2023).
“Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” said NAR Chief Economist Lawrence Yun. “There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market.”
Total housing inventory[ii] registered at the end of March was 1.11 million units, up 4.7% from February and 14.4% from one year ago (970,000). Unsold inventory sits at a 3.2-month supply at the current sales pace, up from 2.9 months in February and 2.7 months in March 2023.
“More inventory is always welcomed in the current environment,” Yun added. “Frankly, it’s a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise.”
The median existing-home price[iii] for all housing types in March was $393,500, an increase of 4.8% from the previous year ($375,300). All four U.S. regions registered price gains.
REALTORS® Confidence Index
According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 33 days in March, down from 38 days in February but up from 29 days in March 2023.
First-time buyers were responsible for 32% of sales in March, up from 26% in February and 28% in March 2023. NAR’s 2023 Profile of Home Buyers and Sellers – released in November 2023[iv] – found that the annual share of first-time buyers was 32%.
All-cash sales accounted for 28% of transactions in March, down from 33% in February but up from 27% one year ago.
Individual investors or second-home buyers, who make up many cash sales, purchased 15% of homes in March, down from 21% in February and 17% in March 2023.
Distressed sales[v] – foreclosures and short sales – represented 2% of sales in March, virtually unchanged from last month and the prior year.
Mortgage Rates
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.88% as of April 11. That’s up from 6.82% the previous week and 6.27% one year ago.
Single-family and Condo/Co-op Sales
Single-family home sales declined to a seasonally adjusted annual rate of 3.8 million in March, down 4.3% from 3.97 million in February and 2.8% from the prior year. The median existing single-family home price was $397,200 in March, up 4.7% from March 2023.
At a seasonally adjusted annual rate of 390,000 units in March, existing condominium and co-op sales decreased 4.9% from last month and 11.4% from one year ago (440,000 units). The median existing condo price was $357,400 in March, up 5.8% from the previous year ($337,900).
Regional Breakdown
Existing-home sales in the Northeast climbed 4.2% from February to an annual rate of 500,000 in March, ending a four-month streak where sales in the Northeast registered 480,000 units. Compared to March 2023, home sales were down 3.8%. The median price in the Northeast was $434,600, up 9.9% from one year ago.
In the Midwest, existing-home sales retracted 1.9% from one month ago to an annual rate of 1.01 million in March, down 1.0% from the prior year. The median price in the Midwest was $292,400, up 7.5% from March 2023.
Existing-home sales in the South faded 5.9% from February to an annual rate of 1.9 million in March, down 5.0% from one year before. The median price in the South was $359,100, up 3.4% from last year.
In the West, existing-home sales slumped 8.2% from a month ago to an annual rate of 780,000 in March, a decline of 3.7% from the previous year. The median price in the West was $603,000, up 6.7% from March 2023.
[i] Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.
Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
[ii] Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condos were measured only on a quarterly basis).
[iii] The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.
The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.
[iv] Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s REALTORS® Confidence Index, which include all types of buyers. The annual study only represents primary residence purchases, and does not include investor and vacation home buyers. Results include both new and existing homes.
[v] Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s REALTORS® Confidence Index, posted at nar.realtor.
![21% of Mortgage Offers Went to Gen X Homebuyers in 2023 [New LendingTree Report] [New LendingTree Report]](/media/k2/items/cache/52b224be2921066656928bea6ef1574e_M.jpg)
Many members of Generation X — born between 1965 and 1980 — are well into their middle age. While most Gen Xers aren’t house hunting, they make up a notable chunk of homebuyers in today’s expensive housing market.
To highlight where Gen Xers are looking to buy, we analyzed mortgage offers given to users of our online shopping platform across the nation’s 50 largest metropolitan areas in 2023. Here's what we found.
- Across the nation’s 50 largest metros, 21.25% of mortgage offers in 2023 on the LendingTree platform went to Gen Xers.
- Gen Xers made up the largest share of potential homebuyers in Miami, Riverside, Calif., and Las Vegas. In Miami, 27.43% of mortgage offers made on the LendingTree platform went to Gen Xers. The shares in Riverside and Las Vegas were 27.14% and 27.07%, respectively.
- Gen Xers made up the smallest share of potential buyers in Buffalo, N.Y., Salt Lake City and Boston. With 15.39% and 15.92% of mortgage offers going to Gen Xers in Buffalo and Salt Lake, these were the only two metros in which fewer than 16% of mortgage offers went to Gen Xers.
- Gen Xers often planned to put larger down payments toward their homes than millennials, but they tended to be offered smaller mortgages.
You can check out our full report here: https://www.lendingtree.com/home/mortgage/most-popular-metros-gen-x-homebuyers/
LendingTree's Senior Economist and report author, Jacob Channel, had this to say:
"Members of Generation X are by no means the largest group of homebuyers in today’s housing market, but they nonetheless make a sizable impact. Owing to the fact that many are in their peak earning years, homebuying can be attainable for some Gen Xers, even in today’s expensive housing market. Of course, not all Gen Xers are wealthy and like members of any generation, dealing with relatively high mortgage rates and home prices can be challenging."
Nationwide, one-third of homeowners who lost insurance have moved or plan to move, but nearly the same share are staying in their home with little or no coverage
Nearly three-quarters (70.3%) of Florida homeowners and over half (51%) of California homeowners say they or the area they live in has been affected by rising home insurance costs or changes in coverage (e.g., their insurer dropped them) in the past year. That compares with less than half (44.6%) of homeowners nationwide, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
This report is based on a Redfin-commissioned survey by Qualtrics in February 2024. The nationally representative survey was fielded to 2,995 U.S. homeowners and renters.
Insurance is top of mind for homeowners in Florida and California because those states are the epicenters of the insurance housing crisis. Many homeowners have seen their premiums skyrocket, and some have lost coverage altogether because intensifying natural disaster risk has prompted many insurers to stop doing business in Florida and California. Seven of California’s biggest property insurers have recently opted to limit new policies in the Golden State amid increasing wildfire risk. And in the Sunshine State, 11 insurers have liquidated amid growing flood and storm risk.
Mounting insurance costs and natural disasters are prompting some people to relocate. In Florida, 11.9% of survey respondents who plan to move in the next year cited rising insurance costs as a reason—roughly twice the national share of 6.2%. And in California, 13.1% of people who intend to relocate in the coming year cited concern for natural disasters or climate risks as a reason, compared with 8.8% of respondents nationwide. But while some people are leaving disaster-prone areas, there are still more people moving in than out, a separate Redfin analysis found.
“Homeowners living in areas where insurance premiums are surging are at risk of seeing their properties gain less value than homeowners in areas with stable premiums—and in some cases, they may even lose money,” said Redfin Chief Economist Daryl Fairweather. “Homes with low disaster risk and low insurance costs will likely become increasingly popular, and thus more valuable, as the dangers of climate change intensify.”
Condo prices in some parts of Florida have already started to fall amid an increase in insurance costs and HOA fees.
12% of Florida Homeowners Who Have Faced Insurance Changes Were Dropped By Their Insurer
This section focuses on the 1,198 U.S. homeowner respondents who said they or their area has or may have been impacted by rising home insurance costs or changes in coverage in the past year. Redfin asked these homeowners specifically which insurance insurance-related changes they’ve seen and are concerned about.
Roughly one in eight Florida respondents (12%) and one in nine California respondents (10.7%) said their insurance company stopped offering coverage for their home, compared with 8.3% of respondents overall.
Other homeowners are worried they will be dropped by their insurer in the future: Over one-quarter (27.7%) of respondents in Florida said they are or have been concerned their insurer may stop offering coverage for their home, compared with 13.5% of respondents in California and 8.9% of respondents as a whole.
Most respondents have seen a rise in insurance costs: Overall, nearly three-quarters (71.7%) said their policy premium increased, with a slightly higher share in Florida (76%) and a slightly lower share in California (62.9%).
The average annual U.S. home insurance rate is expected to rise 6% this year to $2,522 after surging 19.8% between 2021 and 2023, according to Insurify. In Florida, the average annual rate is $10,996—higher than any other state.
1 in 3 Homeowners Who Lost Insurance Coverage Has Moved or Plans To Move
Roughly 100 homeowners who participated in the survey indicated that their insurance company stopped offering coverage for their home. One-third (33.2%) of those respondents moved or plans to move to a new area where coverage is available. But nearly the same share (30%) are staying in their home with little or no coverage.
Almost half (46%) of respondents who lost insurance coverage said they’ve found a new insurer to cover their home. A similar share (44.5%) said they pay a significantly higher premium for coverage than before.
Oftentimes when homeowners lose insurance coverage through a private insurer, they’re forced to buy into a more expensive state-created plan—such as California’s FAIR Plan or Florida’s Citizens Property Insurance Corp. But in many cases, it’s unclear whether those programs have enough money to cover losses; a Bloomberg analysis found that 36 states have residual insurance plans, but 21 of those don’t explicitly spell out how they’d pay deficits that exceed their assets.
Only One-Third of Homeowners Know Which Natural Disasters Their Insurance Covers
Roughly one-third of U.S. homeowners (34%) know which natural disasters their insurance for their home covers. An even smaller share—27.2%—know which natural disasters their insurance covers and how much damage is covered under their policy.
With climate disasters on the rise, homeowners should revisit their existing insurance policies so they know exactly what and how much is covered, Fairweather said. In some cases, they may want to purchase an additional policy covering a specific disaster, like fire or flood.
Over One-Third of Real Estate Agents Have Seen an Increase in Insurance-Related Issues
More than one-third of real estate agents (34.4%) have experienced an increase in issues related to home insurance during transactions over the past year.
This is according to a separate Redfin-commissioned survey of 500 real estate agents from a wide spectrum of U.S. brokerages, conducted by Qualtrics in December 2023.
The share was significantly higher in Florida and California. In Florida, nearly three-quarters (73%) of agents have seen an uptick in insurance issues in the last year, and in California, the share was 64%.
To view the full report, including charts, please visit: https://www.redfin.com/news/home-insurance-survey-report-2024
Freddie Mac (OTCQB: FMCC) Multifamily today announced a series of policy and process enhancements that further strengthen underwriting due diligence, bolster fraud detection and deterrence, and mitigate other risks. Effective April 18, the changes include enhanced property inspection requirements and additional due diligence, among other measures.
"Freddie Mac remains focused on risk management and works to enhance our processes to better detect and deter fraud and misrepresentation,” said Ian Ouwerkerk, senior vice president of Multifamily Underwriting & Credit. “We take these issues seriously, and these enhancements are just the latest step in our effort to manage risk and improve our execution."
The enhancements will appear in Freddie Mac’s Multifamily Seller/Servicer Guide (“Guide”) and take effect on April 18. They specifically include the following:
- Property inspections will require an increased number of unit inspections and higher lease audit sample sizes. Additional documentation will be required for lease audits to confirm actual tenant rental payments.
- Stronger “Know Your Customer” requirements, including enhanced due diligence for first-time borrowers and borrowers with limited multifamily experience, additional liquidity verification and verification of real estate owned by the borrower.
- Updated process to limit Freddie Mac Multifamily business with certain title companies when applicable.
- Additional appraisal review and appraiser independence requirements to safeguard the independence, objectivity and impartiality of appraisers.
The April updates reflect another step in Freddie Mac’s ongoing effort to enhance its processes. In November 2023, the company announced new measures to clarify multifamily documentation chain of custody requirements as loan due diligence moves from borrower to lender.
Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More:
Website
The buzzwords of today’s digital age are ‘AI’ and ‘Artificial Intelligence.’
These excite some and strike fear into others. Yet whatever your position, this Hard Trend is undeniable and will shape the future of your business or organization in some way.
Applications like ChatGPT, deep data algorithms, and others are changing the face of work and how we approach business practices at an unprecedented speed. So what does that mean for the roles we have at work? Better yet, how do employers acquire talent with the skills necessary to keep operations progressing into the future? And finally, how do employees adapt when many of the tasks they are used to completing are being transformed by AI?
AI Is Moving Fast
Organizations and employees alike find comfort in their tried-and-true operations, but the business world is never constant — change is the only constant. According to a recent report completed by Goldman Sachs, 60% of the jobs available today did not exist in the 1940s. With the accelerated rate at which AI is transforming our current roles, today’s positions will be exponentially different in the next 5, 10, 15, and 20 years.
We do not have the luxury of sitting back and becoming complacent in our current roles, no matter what level they are at. Instead, we need to take an Anticipatory approach to work, looking at the future of AI technology in the workplace and proactively arming our workforce with essential knowledge and skills.
Do Not Let AI Lead You — Be the Leader
Because AI is progressing at such an exponential rate and will continue to do so, many organizations are still finding it difficult to obtain and retain top talent. Likewise, workers are finding it difficult to assimilate to their new roles in a technology-driven workforce.
Adaptation to AI is certainly on everyone’s minds; however, there is a slight problem with the concept of adaptation. It is a complacent and reactive approach to this digital disruption and will continue to be. Essentially, using agility to face AI will continue to put you in a place of professional anxiety.
With the uptick in AI applications, many companies have allowed AI to come to them. As a result, they wind up disrupted and feel that AI is at fault. Let me be frank: AI applications are not sentient beings. They merely exist and can or cannot be put into action.
It is up to you to apply AI within your business or organization. But applying AI is only half the battle. There is the human factor of the equation, in which your employees are affected by those AI applications. What ends up happening is business leaders either replace employees with those who have the technical skills necessary to work with AI or they force their current employees to learn these skills at unrealistic speeds.
But in reality, no matter the option you select, you are already behind at this point.
High-Level Skills and Technical Knowledge Are a Powerful Combination
Implementing AI applications in Anticipatory ways is definitely part of the equation, but as a leader, you are dealing with humans at your organization. Humans need to be taught how to work with these AI applications.
Teaching the essential skills at the heart of AI encompasses more than just technical know-how of coding languages, data sets, and machine learning principles. These are valuable skills, but employers need to teach how to leverage the higher levels of cognitive domain that human beings bring to the table.
In 1954, psychologist Benjamin Bloom developed a framework for categorizing educational goals: Bloom’s Taxonomy of Educational Objectives. The categories are:
• Knowledge
• Comprehension
• Application
• Analysis
• Synthesis
• Evaluation
Knowledge and comprehension are the lower levels, while application, analysis, synthesis, and evaluation are higher. By creating a space for employees to foster these higher levels, you not only encourage them to develop confidence in their use of these new skills, but employees will also have the advantage of examining data and filtering the most crucial information in a way that AI cannot.
Bringing It All Together
Creative problem-solving, decision-making, and the ability to communicate effectively are key skills that AI cannot touch. A mastery of these skills gives you, your team, and your business or organization the competitive advantage in your industry!
As you can see, an Anticipatory approach to AI in your industry and others is not just about working AI into your system. Human employees will always be a valuable asset to any business or organization, but much like AI applications, they too need to evolve and “upgrade.”
Combine these high-level skills with modernized knowledge in your training, make it interactive, and give current employees downtime to explore and learn these competencies fully. Meshing teaching critical-thinking skills with learning new technology is the way of the future.
To learn more about how you can take advantage of AI and accelerated digital transformation while retaining high-value employees, join my Anticipatory Leader Membership. Right now, you have a choice to make. You can react to problems and disruptions to your life, your career, and your organization after they happen, or you can tap into this unique learning system that will empower you with the ability to accurately foresee disruptions and game-changing opportunities. Learn more: https://www.burrus.com/become-anticipatory.
Lack of affordability is the most commonly cited reason renters don’t believe they’ll ever own a home
Nearly two in five (38%) U.S. renters don’t believe they’ll ever own a home, up from roughly one-quarter (27%) less than a year ago, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
Lack of affordability is the prevailing reason renters believe they’re unlikely to become homeowners. Nearly half (44%) of renters who don’t believe they’ll buy a home in the near future said it’s because available homes are too expensive. The next most common obstacles: Ability to save for a down payment (35%), ability to afford mortgage payments (33%) and high mortgage rates (32%). Roughly one in eight (14%) simply aren’t interested in owning a home.
This is according to a Redfin-commissioned survey of roughly 3,000 U.S. residents, including about 1,000 renters, conducted by Qualtrics in February 2024.
Buying a home has become increasingly out of reach for many Americans due to the one-two punch of high home prices and high mortgage rates. First-time homebuyers must earn roughly $76,000 to afford the typical U.S. starter home, up 8% from a year ago and up nearly 100% from before the pandemic, according to a recent Redfin analysis.
Home prices have risen 7% in the last year alone, and monthly mortgage payments have risen more than 10%, which helps explain why renters today are more likely than they were last year to say they don’t see themselves owning a home anytime soon.
Many renters can’t fathom homeownership because they’re already struggling to afford their monthly housing costs. Nearly one-quarter (24%) of renters say they regularly struggle to afford their housing payments, and an additional 45% say they sometimes struggle to do so.
Rents have soared over the last few years because so many people moved during the pandemic, upping demand for rentals. The median U.S. asking rent is roughly $2,000, near the record high hit in 2022—but the good news for renters is that prices aren’t growing nearly as fast as they were during the pandemic, partly because an influx of apartment supply is taking some of the heat off prices.
“Housing costs are high across the board, but renting is a more affordable and realistic option for many Americans right now—especially those who have never owned a home and aren’t able to tap into equity from a previous sale,” said Redfin Chief Economist Daryl Fairweather. “While owning a home is usually a sound long-term investment, the barriers to entry and upfront costs of buying are higher than renting. Buying typically requires a sizable down payment and approval for a mortgage—things that are difficult for many people today, when the typical down payment is near $60,000 and mortgage payments are sky-high. The sheer expense of purchasing a home is causing the American Dream of homeownership to lose some of its shine.”
Gen Z renters are most likely to believe they’ll own a home
Broken down by generation, Gen Z renters are by far the most likely to believe they will become homeowners. Just 8% of Gen Z renters believe they’ll never own a home, compared to 22% of millennials, 40% of Gen Xers and 81% of baby boomers.
That stands to reason, as adult Gen Zers (aged 18-27) are in the early stages of their careers and have a lot of time to eventually become homeowners. Older generations, especially baby boomers, may have already owned a home and decided to rent for the convenience and low-maintenance lifestyle, or are on a fixed income.
To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/renters-becoming-homeowners-2024
Nearly 20% of recent buyers have no idea who paid their agent and how the amount was determined
39% of homeowners with plans to sell think a 3% buyer’s agent commission seems high, but nearly the same share think it seems just about right
More than one-quarter of recent homebuyers (28%) have no idea how much their agent was paid, and 17% have no idea how the amount was determined, according to a new report from Redfin (www.redfin.com). A similar share—19%—have no idea who paid their agent.
The report is based on a Redfin-commissioned survey conducted by Qualtrics in February 2024. The nationally representative survey was fielded to 2,995 U.S. homeowners and renters. This report focuses on the roughly 120 respondents who indicated they bought a home in the last year and used an agent.
Just over one-third of recent homebuyers know exactly how much their agent was paid (37%) and who paid them (38%), and a slightly lower share have a full understanding of how the amount was determined (33%).
These commissions have always been negotiable, but it has been commonplace for the home seller to cover payment for both their agent and the buyer’s agent, with a commission equal to 2.5%-3% of the home sale price typically going to their agent and another 2.5%-3% typically going to the buyer’s agent.
“Many Americans make the biggest purchase of their life without knowing precisely how the professional they hired to guide them through the transaction is getting paid,” said Redfin Chief Economist Daryl Fairweather. “Home sellers often have a candid conversation about fees with their agent before signing an agreement to work together. Buyers would benefit from doing the same. People feel awkward talking about money, but it's important to understand what your agent is charging and have a discussion about whether you will need to ask the seller to cover your agent's fee as part of your offer negotiation or pay for it out of pocket.”
Real estate agent commissions have been in the news recently because the National Association of Realtors (NAR) in March agreed to pay $418 million to settle a series of class action lawsuits regarding agent pay. As part of the settlement, NAR agreed agents will be required to enter into written agreements with buyers before they tour any home. These agreements must specify the compensation that agents will receive.
Roughly 40% of Homeowners Planning to Sell Soon Think Agent Pay Is Too High…And Roughly 40% Think It Seems Just About Right
About two of every five (39%) homeowners who plan to sell their house in the next year think a 3% commission for a buyer’s agent seems “a little” or “very” high. But a similar share (36%) of likely sellers said it seems “just about right” and 26% said it seems “a little” or “very” low.
Redfin asked likely sellers (and likely buyers) to provide their thoughts on both a 3% commission for buyers’ agents and a 3% commission for sellers’ agents. This data covers the 260 respondents to this question who plan to sell a home in the coming year.
The response rates were similar when Redfin asked about pay for sellers’ agents. Roughly two of every five (39%) homeowners who plan to sell their house in the next year think a 3% commission for a seller’s agent seems “a little” or “very” high. But almost exactly the same share (40%) said it seems “just about right” and 21% said it seems “a little” or “very” low.
Redfin charges customers a listing fee as low as 1% and lets sellers decide how much, if any, commission to offer an agent who brings a buyer. For its entire history, the company has advocated for lower fees, transparency and more choices for real estate consumers.
To read the full report, including charts, visit: https://www.redfin.com/news/real-estate-commissions-survey-2024
-- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.88 percent.
“Mortgage rates have been drifting higher for most of the year due to sustained inflation and the reevaluation of the Federal Reserve’s monetary policy path,” said Sam Khater, Freddie Mac’s Chief Economist. “While newly released inflation data from March continues to show a trend of very little movement, the financial market’s reaction paints a far different economic picture. Since inflation decelerated from 9% to 3% between June 2022 and June 2023, the annual growth rate of inflation has remained effectively flat, ranging from 3.1% to 3.7% and averaging 3.3%. The March estimate of 3.5% annual growth is in the middle of that range. However, the market’s reaction was dramatically different, as illustrated by a significant drop in the Dow Jones Industrial Average post-announcement.”
Khater continued, “It’s clear that while the trend in inflation data has been close to flat for nearly a year, the narrative is much less clear and resembles the unrealized expectations of a recession from a year ago.”
News Facts
- The 30-year FRM averaged 6.88 percent as of April 11, 2024, up from last week when it averaged 6.82 percent. A year ago at this time, the 30-year FRM averaged 6.27 percent.
- The 15-year FRM averaged 6.16 percent, up from last week when it averaged 6.06 percent. A year ago at this time, the 15-year FRM averaged 5.54 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website
![Despite Rising Home Prices, Homeownership Rates Keep Increasing [New LendingTree Report]](/media/k2/items/cache/3100be4da07dc9080d0f1b53f3799be4_S.jpg)
While U.S. home prices have come down from recent highs, they remain relatively steep. Despite this, homeownership rates have gone up in recent years.
More specifically, according to a LendingTree analysis of the latest housing data, the share of owner-occupied homes in the nation’s 50 largest metropolitan areas increased by 108 basis points from 2012 to 2022. In other words, our findings indicate that even though home values in some areas have more than doubled since 2012, more people have become homeowners.
- As of 2022, almost 43.5 million of the 70.4 million occupied housing units in the nation’s 50 largest metros were owner-occupied. The overall homeownership rate across these metros is 61.72%.
- Homeownership rates are highest in the Detroit, Minneapolis and Pittsburgh metros. The homeownership rates in these metros are 71.49%, 70.54% and 70.45%, respectively.
- Homeownership rates are lowest in the Los Angeles, New York, and San Diego metros. At 47.94%, Los Angeles is the only metro among the 50 largest where the homeownership rate is lower than 50.00%.
- From 2012 to 2022, the homeownership rate rose by 108 basis points from 60.64% to 61.72%. That’s an increase of 6,155,379 owner-occupied housing units.
You can check out our full report here: https://www.lendingtree.com/home/mortgage/homeownership-rates-study/
LendingTree's Senior Economist and report author, Jacob Channel, had this to say:
"In simplest terms, homeownership rates have gone up despite rising prices because low pandemic-era mortgage rates helped offset increased home values and incentivize homeownership. Remember that while home prices play a role in how feasible homebuying is, mortgage rates are often just as important. Over the coming years, homeownership rates may decline in some areas as the nation continues to adjust to our higher-rate housing market."
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Americans report skipping meals, working overtime, and delaying medical care to afford housing
Half of U.S. homeowners and renters (49.9%) sometimes, regularly or greatly struggle to afford their housing payments, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Many report making sacrifices to cover their housing costs.
The most common sacrifice was taking no or fewer vacations. More than one-third of homeowners and renters (34.5%) who struggle to afford housing indicated that they skipped vacations in the past year in order to afford their monthly costs.
But many people who struggle to afford housing made more serious sacrifices: 22% skipped meals and 20.7% worked extra hours at their job. A similar share (20.6%) sold belongings.
These responses are based on a Redfin-commissioned survey conducted by Qualtrics in February 2024. The nationally representative survey was fielded to roughly 3,000 U.S. homeowners and renters. Most of Redfin’s report focuses on the 1,494 respondents who indicated that they sometimes, regularly or greatly struggle to afford regular rent or mortgage payments.
More than one of every six people (17.9%) who struggle to afford housing borrowed money from friends/family, and 17.6% dipped into their retirement savings. Over one in seven (15.6%) delayed or skipped medical treatments.
“Housing has become so financially burdensome in America that some families can no longer afford other essentials, including food and medical care, and have been forced to make major sacrifices, work overtime and ask others for money so they can cover their monthly costs,” said Redfin Economics Research Lead Chen Zhao. “Fortunately, the country’s leaders are starting to pay attention, and homebuyers may get a reprieve in June if the Federal Reserve cuts interest rates, which would bring down the cost of getting a mortgage.”
Mortgage payments are near their all-time high due to rising prices and elevated mortgage rates: The median U.S. home sale price is up about 5% from a year ago, and mortgage rates are hovering around 7%, not far from the 23-year high of roughly 8% hit in October. The typical household earns roughly $30,000 less than it needs to afford the median-priced home, and rents are on the rise again.
14% of Millennials Dipped Into Retirement Savings to Afford Housing Payments
Nearly one of every seven millennials (13.5%) who struggle to afford their housing payments have dipped into retirement savings to cover their monthly costs.
Most millennials are not retired, but housing affordability has become so strained that some are resorting to outside-the-box strategies to cover expenses. Millennials are the largest adult generation, and many are aging into their homebuying years at a time when home prices and mortgage rates are high.
The income needed to afford a starter home is up 8% from a year ago, prompting some young buyers to use family money to cover their down payment.
Baby boomers who struggle to afford housing were most likely to dip into retirement funds, with over one-quarter (27.5%) saying they did so to cover housing expenses. That makes sense, as many baby boomers are already retired, and it’s common for retirees to put their retirement savings toward housing.
Roughly 1 in 6 (15.5%) Gen Xers who struggle to afford housing dipped into retirement savings to afford monthly housing costs. The share was lowest among Gen Z respondents (6.5%), many of whom don’t yet have retirement savings.
The IRS typically taxes people who make withdrawals from their retirement accounts before the age of 59.5, but makes an exception for qualified first-time homebuyers, who are allowed to borrow up to $10,000 tax free.
Broken down by race/ethnicity, white respondents who struggle to afford housing were most likely (20.7%) to use retirement savings to cover housing costs, followed by Asian/Pacific Islander respondents (14%), Hispanic/LatinX respondents (13.6%) and Black respondents (12.6%).
Black Respondents Most Likely Work Extra Hours to Afford Housing; Gen Zers Most Likely to Sell Belongings
While pressing pause on vacations was the most common sacrifice for respondents as a whole, it wasn’t the top answer choice for every demographic. People of color and younger generations often made more serious sacrifices.
For example, Black respondents who struggle to afford housing were most likely to say they worked extra hours (25.9%) to cover their monthly costs, while Hispanic respondents were most likely to say that they sold belongings (28.2%). Skipping vacations was the most common answer among Asian/Pacific Islander respondents (43.8%) and white respondents (39.6%).
Black millennials are half as likely to own homes as white millennials, according to a separate Redfin analysis, though the racial homeownership gap exists across every generation due to decades of racist policies and discrimination.
When it came to age groups, skipping vacations was the top choice for baby boomers (42.8%), Gen Xers (36.8%) and millennials (31.3%) who struggle to afford housing. But for Gen Zers, the most common sacrifices were working extra hours, selling belongings and skipping meals, all of which clocked in at roughly 27%.
White Respondents, Baby Boomers and Homeowners Most Likely to Afford Housing Easily
Of the roughly 2,995 people who took the survey, half (50.1%) said they can easily afford their regular rent or mortgage payments, and half (49.9%) said they sometimes, regularly or greatly struggle to do so.
But the results vary by demographic. For example, 54.5% of white respondents said they can easily afford their housing payments, compared with 37.8% of Hispanic/LatinX respondents, 46.6% of Black respondents and 47.4% of Asian/Pacific Islander respondents.
Baby boomers were most likely to say they easily afford housing payments (61.9%), followed by Gen Xers (48.7%), millennials (40.2%) and Gen Zers (26.9%).
And homeowners (59.9%) were roughly twice as likely as renters (30.8%) to indicate that they easily afford their housing payments.
To view the full report, including charts and a detailed methodology, please visit: https://www.redfin.com/news/homebuying-sacrifices-survey-2024
![March Housing Report: Housing Market Takes a Step in a Buyer-Friendly Direction [Realtor.com]](/media/k2/items/cache/d0c0d38a847cd408c3bd6624c03648bf_XS.jpg)
March data shows the largest share of price reductions since 2019 with 34 out of the 50 largest metros showing an uptick in drops
According to the Realtor.com® March housing report, buyers are looking at an optimistic mix of increasing inventory and an uptick in price reductions going into the Spring season. In March, the percentage of homes with price reductions increased to 15.0% - the largest share in 5 years - and the total number of homes actively for sale grew by 23.5% compared to last March (but remains well below pre pandemic levels).
“Sellers are starting to warm up to the current environment, wading into the market in increasing numbers despite market mortgage rates that are likely above their existing rate, if they have a mortgage. As a result, data shows surprisingly competitive pricing trends among sellers, especially in the lead up to this year’s Best Time to Sell, which Realtor.com® reported will be between April 14th - 20th,” said Danielle Hale, Chief Economist of Realtor.com®. “As seller optimism swells, we may see even further inventory gains later in the season that will likely create a more balanced environment for hopeful homebuyers.”
List of the 10 Metro Areas with Largest Share of Price Reductions of Total Inventory
- Tampa-St. Petersburg-Clearwater, Fla. – 27.6%
- Phoenix-Mesa-Chandler, Ariz. – 23.0%
- Austin-Round Rock-Georgetown, Texas – 22.3%
- Jacksonville, Fla. – 22.1%
- San Antonio-New Braunfels, Texas – 21.8%
- Orlando-Kissimmee-Sanford, Fla. – 20.2%
- Portland-Vancouver-Hillsboro, Ore.-Wash. – 20.1%
- Miami-Fort Lauderdale-Pompano Beach, Fla. – 19.7%
- Dallas-Fort Worth-Arlington, Texas – 19.5%
- Memphis, Tenn.-Miss.-Ark. – 19.3%
Across the country, price reductions were up compared with last year. In the South it was up 3.5 percentage points, +1.0 percentage points in the Midwest, +0.5 percentage points in the Northeast, and +0.2 percentage points in the West.
Sellers Turned Out as Home Listing Activity Continued to Climb
Between January 2024 and March 2024, the inventory of homes actively for sale was at its highest level since 2020. While inventory looks to be on the upswing, it’s important to note that the market is still down 37.9% compared to pre-pandemic levels. Like in February 2024, one price range in particular has outpaced all other price categories as home inventory between $200,000 and $350,000 grew by 30.5% compared to March 2023. A few metros experienced huge gains in active inventory for sale including Tampa (+58.3%), Orlando (53.3%), and Miami (48.2%).
Median List Price is in Flux; Up From Last Month, But Not Much has Changed from Last Year
The national median list price increased from $415,500 to $424,900 between February and March 2024. But, when compared to last year, the median list price only increased by 0.2% from March 2023. In two weeks of March, the median list price even dipped below last year’s levels. Out of the 50 largest metros, 18 saw their median list price decline compared to last year including Miami (-8.4%), Oklahoma City (-8.3%), and San Francisco (-7.6%), while Los Angeles (+15.1%), Richmond (+11.8%), and Pittsburgh (+11.6%) saw the biggest increases. As prices fluctuate, so do the requirements for financing a home. With mortgage rates hovering between 6.6% and 7% for the past three months, the cost of financing a home (assuming a 20% down payment) increased by $63 compared to last March.
March 2024 Housing Metrics – National
|
Metric |
Change over Mar 2023 |
Change over Mar 2019 |
|
Median listing price |
+0.2% (to $422,700) |
+38.9% |
|
Active listings |
+32.5% |
-37.7% |
|
New listings |
+16.5% |
-17.2% |
|
Median days on market |
-2 days (to 50 days) |
-15 days |
|
Share of active listings with price reductions |
+2.2 percentage points (to 15.0%) |
+0.0 percentage points |
Additional details and full analysis of the market inventory levels, price reductions, fluctuations and stabilization can be found in the Realtor.com® March Monthly Housing Report.
March 2024 Housing Overview of the 50 Largest Metros, Ranked by Largest Price Reduction
|
Metro Area |
Median Listing Price |
Median Listing Price YoY |
Median Listing Price per Sq. Ft. YoY |
Active Listing Count YoY |
New Listing Count YoY |
Median Days on Market |
Median Days on Market Y-Y (Days) |
Price Reduced Share |
Price Reduced Share Y-Y (Percentage Points) |
|
$419,000 |
2.2% |
3.0% |
58.3% |
29.3% |
51 |
0 |
27.6% |
8.3 pp |
|
|
$535,000 |
7.1% |
4.1% |
16.9% |
9.7% |
49 |
-1 |
23.0% |
-2.0 pp |
|
|
$550,000 |
0.0% |
2.0% |
15.8% |
19.0% |
40 |
-11 |
22.3% |
-4.5 pp |
|
|
$415,000 |
3.9% |
4.6% |
38.6% |
22.1% |
47 |
-5 |
22.1% |
4.6 pp |
|
|
$340,000 |
-1.9% |
-1.4% |
36.8% |
16.9% |
57 |
2.5 |
21.8% |
3.1 pp |
|
|
$439,000 |
-0.4% |
2.0% |
53.3% |
14.6% |
54 |
1 |
20.2% |
6.2 pp |
|
|
$605,000 |
-1.6% |
2.2% |
26.7% |
7.7% |
45 |
1.5 |
20.1% |
9.7 pp |
|
|
$549,000 |
-8.4% |
-3.6% |
48.2% |
16.6% |
58 |
-2 |
19.7% |
5.5 pp |
|
|
$440,000 |
-0.5% |
1.4% |
38.0% |
16.7% |
40 |
-5.5 |
19.5% |
3.5 pp |
|
|
$327,000 |
2.5% |
2.3% |
38.2% |
16.1% |
51 |
-1.5 |
19.3% |
4.8 pp |
|
|
$559,000 |
6.0% |
6.9% |
9.3% |
3.6% |
32 |
-3 |
18.8% |
0.6 pp |
|
|
$329,000 |
-0.3% |
-0.5% |
27.7% |
-4.8% |
67 |
9 |
17.8% |
-0.6 pp |
|
|
$321,000 |
-8.3% |
-1.5% |
22.9% |
17.4% |
45 |
-5.5 |
17.2% |
5.2 pp |
|
|
$620,000 |
-5.4% |
2.6% |
48.1% |
19.4% |
30 |
3.25 |
17.2% |
4.1 pp |
|
|
$363,000 |
0.7% |
1.3% |
23.5% |
20.1% |
43 |
-3.5 |
16.7% |
2.4 pp |
|
|
$410,000 |
2.1% |
5.8% |
19.9% |
1.2% |
38 |
-3.5 |
16.5% |
4.1 pp |
|
|
$330,000 |
5.5% |
5.8% |
23.5% |
8.3% |
42 |
-4.25 |
16.2% |
2.6 pp |
|
|
$410,000 |
0.0% |
4.0% |
22.1% |
11.9% |
41 |
-5 |
15.7% |
2.6 pp |
|
|
$380,000 |
0.8% |
6.8% |
20.2% |
9.7% |
29 |
-0.5 |
14.2% |
2.0 pp |
|
|
$470,000 |
4.4% |
5.8% |
-33.1% |
8.4% |
38 |
-15 |
13.7% |
-6.4 pp |
|
|
$315,000 |
2.3% |
3.6% |
14.5% |
5.9% |
40 |
4 |
13.6% |
0.6 pp |
|
|
$391,000 |
4.8% |
6.4% |
14.3% |
2.2% |
34 |
-4 |
13.2% |
2.3 pp |
|
|
$290,000 |
4.0% |
5.3% |
27.6% |
12.6% |
50 |
-1 |
13.1% |
-0.1 pp |
|
|
$599,000 |
7.1% |
7.1% |
7.5% |
15.2% |
47 |
-7 |
13.0% |
0.4 pp |
|
|
$240,000 |
11.6% |
9.9% |
10.8% |
1.3% |
55 |
-9 |
12.9% |
0.8 pp |
|
|
$335,000 |
-3.8% |
2.4% |
11.6% |
6.5% |
36 |
-7 |
11.3% |
1.1 pp |
|
|
$450,000 |
0.0% |
5.9% |
6.1% |
18.1% |
42 |
-9.5 |
11.2% |
-1.5 pp |
|
|
$425,000 |
-6.6% |
-4.0% |
8.1% |
20.7% |
51 |
-19.75 |
11.2% |
2.9 pp |
|
|
$350,000 |
-4.7% |
6.2% |
28.1% |
17.0% |
37 |
-1 |
11.1% |
3.0 pp |
|
|
$635,000 |
1.3% |
4.2% |
16.9% |
32.5% |
36 |
-6.5 |
11.1% |
1.0 pp |
|
|
$350,000 |
6.6% |
7.2% |
-1.3% |
1.6% |
43 |
-6.5 |
11.0% |
0.0 pp |
|
|
$230,000 |
8.4% |
9.2% |
0.4% |
2.4% |
42 |
-1.5 |
11.0% |
1.5 pp |
|
|
$998,000 |
5.1% |
11.1% |
26.3% |
25.9% |
32 |
-5 |
10.9% |
1.2 pp |
|
|
$292,000 |
4.7% |
4.8% |
14.2% |
4.9% |
39 |
-7.5 |
10.3% |
0.8 pp |
|
|
$240,000 |
1.2% |
1.7% |
3.6% |
4.1% |
42 |
-3.5 |
9.8% |
-2.3 pp |
|
|
$880,000 |
6.9% |
10.0% |
0.9% |
7.3% |
24 |
-4 |
9.7% |
1.3 pp |
|
|
$445,000 |
-1.4% |
-0.2% |
24.3% |
16.8% |
34 |
-4 |
9.5% |
2.3 pp |
|
|
$450,000 |
11.8% |
8.7% |
8.8% |
-9.4% |
44 |
3 |
9.1% |
1.3 pp |
|
|
1150000 |
15.1% |
8.1% |
5.4% |
17.8% |
42 |
-3.5 |
9.0% |
-0.4 pp |
|
|
$768,000 |
-2.7% |
1.4% |
20.3% |
19.5% |
29 |
-3 |
8.7% |
-0.8 pp |
|
|
$604,000 |
0.8% |
6.6% |
2.2% |
3.2% |
31 |
-3 |
8.7% |
0.9 pp |
|
|
$999,000 |
-7.6% |
-1.2% |
13.4% |
21.7% |
27 |
-6.5 |
8.6% |
-0.3 pp |
|
|
$365,000 |
-0.3% |
5.2% |
9.9% |
12.4% |
29 |
-3.5 |
7.9% |
0.7 pp |
|
|
$375,000 |
6.4% |
7.3% |
-7.7% |
2.0% |
33 |
-7 |
7.8% |
-1.8 pp |
|
|
$760,000 |
8.8% |
15.2% |
-4.3% |
2.6% |
50 |
-5 |
6.8% |
-0.4 pp |
|
|
$500,000 |
-2.8% |
-1.7% |
0.1% |
12.1% |
35.5 |
-5.75 |
6.3% |
0.6 pp |
|
|
1481000 |
-0.9% |
1.1% |
2.2% |
21.5% |
22 |
-5 |
5.8% |
-1.6 pp |
|
|
$270,000 |
9.7% |
9.6% |
4.2% |
3.7% |
38 |
-6.5 |
5.3% |
-0.3 pp |
|
|
$400,000 |
-0.7% |
4.7% |
6.1% |
6.5% |
37 |
8 |
5.1% |
0.6 pp |
|
|
$280,000 |
8.7% |
7.1% |
-4.0% |
9.0% |
22 |
-2 |
4.3% |
-2.5 pp |
Methodology
Realtor.com housing data as of March 2024. Listings include the active inventory of existing single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com. Realtor.com data history goes back to July 2016. 50 largest U.S. metropolitan areas as defined by the Office of Management and Budget (OMB-202003).
When it comes to the concept of disruptions in this world, we tend to focus on all the new digital tools that are creating ripples in headlines. From generative AI to digital currency, these digital disruptions are definitely leaving their impact. But instead, the focus of today should be on the very concept of disruption itself, not just digital disruption.
The word “disruption” is a key stumbling point for many. Having worked with businesses and organizations of varying sizes worldwide, what I have discovered is that while most have a heavy focus on digital disruptions, others do not consider the many other disruptions this world is throwing our way.
To help the world while leveraging disruptions, we must better understand the term “transformation” as well. What we are aiming to do is transform the world instead of merely changing it. In today’s world of accelerating disruptions of any kind, if you are only aiming to change something, you are falling further and further behind.
Transformation and Change Have Never Been the Same
To account for those aforementioned disruptions, being agile is important. But no matter how agile you are, reacting quickly is not an effective strategy. You want to implement a strategy that takes into consideration the long-term vitality of your business and one that betters humankind!
We now need to become much more Anticipatory than ever before, using Hard Trends based on future facts to anticipate disruptions before they disrupt. This is how you create more long-term significance in your organization and the world overall.
I always explain this in the form of a two-sided strategic coin. Agility represents a defensive strategy on one side of the strategic coin, and anticipation represents the offensive side. Leveraging disruptions to create transformation is an Anticipatory competency that is vital in many ways. This competency is quite different from making changes to your business strategy to respond to said disruptions with agility.
When you create a change, you generally are making some type of nominal adjustment. A transformation has a much larger impact on both your organization and the world. We want to make differences that better the lives of our current and future customers.
Create Transformation to Address Problems of Sustainability
If we do not become Anticipatory and look for ways to transform our world instead of trying to change them in an agile way, we will have an increasing number of problems to solve.
Many have said that when dealing with a problem, sometimes the answer is right in front of your eyes. This is true, but I have found that in many cases, the answer may be in the opposite direction.
The Law of Opposites is an Anticipatory competency that helps you and your team see opportunity in the most inconspicuous places. This law encourages you to look in the opposite direction to find solutions to problems that seem overwhelming and often impossible to solve.
SpaceX is a company that leveraged this Anticipatory competency and created a transformation in an industry that others, even NASA themselves, thought to be unrealistic.
Rockets launched into space leave a trail of space junk that, in most cases, burns up upon re-entry into the Earth’s atmosphere. Most of the rockets proved to be a one-time use. Elon Musk and his team at SpaceX went the route of building reusable rockets. This nearly eliminates the issue of space junk and creates a level of sustainability for their organization and the aerospace industry. They are the first to do this and have become a staple in space exploration, launching and servicing satellites, and now are involved in our next moon mission.
So, how did the Law of Opposites help this prolific company create a transformation in their industry?
Instead of looking at the obvious problem, they took a look in the opposite direction. The issues, including cost, that were plaguing space travel were not the right problem. The problem was how to continue space exploration in the most sustainable way. In turn, SpaceX built something sustainable for themselves and our world.
Actionable Insights for Your Organization
I want your organization to be able to sustain growth and its significance in the world. Likewise, I want your organization to be a beacon of transformation that benefits humankind in whatever way you can!
It all starts on a very simple and small scale. I encourage everyone to be both agile and Anticipatory in thinking and practice to create transformations.
As I said earlier and will say again, agility and anticipation are like two sides of a strategic coin. The agility side represents playing defense — a fast, reactive strategy that is good for changes that seem to come out of nowhere. The other half of the strategy coin is anticipation — playing offense, anticipating disruptions before they disrupt, and as the case with SpaceX, going opposite to pre-solve problems before they occur. Both are needed to leverage disruptions to your organization’s advantage.
Will your organization transform your processes, products, and services to build a sustainable practice? Or will you stick to changing them on an as-needed basis? The answer is a Soft Trend — it is up to you to take charge!
Sometimes you say something and you later regret having said it. Sometimes you think you are helping, but then say something that only makes things worse! We have all been in or seen that situation and understand how it happens. But when the person who says it is in a position of power, it can really have drastic consequences. In the past few days, we saw just that, the president was out on a campaign event and said that he was pretty sure the FED would be cutting rates soon. While he smiled, the markets knew that this was going to become an issue!
The FED has always tried to maintain at least the appearance of being apolitical and independent. The job is to navigate the economy without yielding to political pressure. While not easy, it becomes even more challenging in a presidential election year and it’s the president suggesting that rate cuts are soon to follow. The knee jerk reaction in the markets and likely the FED is to now anticipate even a longer pause in any potential rate cuts to give the appearance of not succumbing to political pressure from the president. When you add that to the surprising data we have seen over the last couple of weeks, future rate cuts may very well get pushed pretty far down the road. This week we have the jobs report on Friday and another strong report could significantly impact the markets even further than expected.
We also have seen a great deal of conversation about the NAR settlement across the board. I caution everyone to remember that NOTHING has been signed off by a judge yet, so we still have all the specifics going forward. While there is certainly a framework, it’s not a done deal. We also saw the first response from the mortgage side of the equation as FHA 2024-12 was published last week and said that from the FHA point of view, the seller may still pay the buyer’s agent if it is normal and customary in that market and that that it would NOT be considered part of a seller’s concession. So at least there is that. Clearly, there is much more to be addressed on that front down the road.
We have continuing and initial jobless claims today and the March jobs report Friday morning. Could certainly be market moving, so be aware and don’t be blindsided by the news! Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.
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