A Cold Front Through AZ and Interest Rates

Weekly Newsletter December 9^th – 13^th

It got a bit cold this week in both AZ and the mortgage interest rate market. That won’t stop the holiday party season, though!

Interest Rates

30-yr fixed	6.99%
15-yr fixed	6.25%
30-yr fixed FHA	6.65%
30-yr fixed VA	6.65%

Inflation Week

For the most part, the inflation reports came out as expected. Interest rate pricing increased slightly outside the inflation news as the 10-year treasury made gains. Next week, the Fed is expected to cut the Fed Funds rate by another 0.25%, which we don’t anticipate changing the market much in either direction. However, we find ourselves again in a wide range where swings are possible, up and down with any unexpected market news.

Homeowner Wealth

Today’s homeowners have 42 times as much wealth as renters. This is the full-stop stat to share with anyone arguing that renting today is cheaper and makes more sense than purchasing a home.

CoreLogic®

CoreLogic released its loan performance insights, showing that delinquencies remain very low and healthy. Loans 30 days or more delinquent were reported at 3%, which has been slightly more than the last four months but remains in the range it has been in over the previous year. Those seriously delinquent (90+ days) were reported at the very low level of 0.9%, which is an improvement from the already low level of 1% last year. Loans in foreclosure remained near multi-decade lows of 0.3%. When the “market crash” sensationalists get excited, this is their reality check!