|
Cooling Job Market and Plunging Mortgage Rates Signal a Shift
As summer heats up and the excitement of the Olympics takes center stage, significant developments are also unfolding in the financial world. The Federal Reserve is gearing up for its first rate cut in over four years, potentially as soon as the September FOMC meeting, spurred by a faster-than-expected cooling of the labor market. While the economy is likely to slow further in the coming months, experts agree that a full-blown recession is not on the horizon. However, the recent sharp drop in mortgage rates could provide a much-needed boost to home sales in the third and fourth quarters of this year.
Job Growth Slows Sharply as Unemployment Hits Highest Level Since 2021
July saw a significant slowdown in job growth, raising concerns about the U.S. economy's resilience. Nonfarm payrolls increased by just 114,000 jobs, a steep decline from June's revised gain of 179,000 and well below the expected 185,000. The bulk of the job growth occurred in healthcare (+55,000), leisure and hospitality (+23,000), and government (+17,000). However, several sectors, including information, financial services, and professional and business services, showed signs of cooling. The unemployment rate rose to 4.3%, the highest since October 2021, and wage growth also slowed, with average hourly earnings up just 0.2% month-over-month and 3.6% year-over-year. This slowdown has reignited fears of a recession and led to the most significant market sell-off of the year on Wall Street.
Federal Reserve Holds Rates Steady, but Market Turmoil Could Accelerate Cuts
In its July FOMC meeting, the Federal Reserve decided to keep interest rates unchanged but hinted that a rate cut could be imminent. Fed Chair Jerome Powell noted that progress on inflation has been made, and there is increasing confidence within the committee that a rate cut could occur as early as September. However, with global markets in turmoil and recession fears escalating, there is a possibility that the Fed might opt for an emergency rate cut before the next scheduled meeting.
Mortgage Rates Plunge to 15-Month Low
In response to last week’s disappointing jobs report and growing speculation about an imminent Fed rate cut, mortgage rates have dropped to their lowest level in over a year. The weaker-than-expected job growth in July has raised concerns that the economic slowdown could become more widespread, potentially leading to a hard landing. Global stock markets reacted strongly, with investors flocking to safe-haven bonds, pushing the 10-year Treasury yield down nearly 40 basis points to its lowest point since June 2023. As a result, the average 30-year fixed-rate mortgage fell to 6.52% as of August 8, the lowest level in nearly 16 months. While rates may stabilize or even inch up slightly in the short term, as new data shows that the U.S. service sector grew faster than expected in July, the overall trend points to lower borrowing costs, which could help revitalize home sales in the coming months.
Stay updated with the latest market trends and insights to make informed decisions in your real estate journey. Feel free to reach out with any questions or for personalized advice. Your success in real estate is our top priority.
|
|
|
Looking To Move Out Of State?
Save Thousands for Dollars With Our
Relocation Program
As a top agent with the #1 brokerage in North America, I have relationships with some of the top agents all over the country. I have recently helped some clients move to Tennessee, Arizona, Nevada, Montana, Texas, Florida, and other states with the help of my KW Relocation network of local experts to help them find their next dream home. My network of agents saved them thousands of dollars and reduced the time and hassle of finding a new home in another state.
If you or someone you know is looking to relocate to a new city or state, contact me to tap into the power of my network of experienced agents throughout North America.
|
|
 |
|
Looking To Sell A Property That Needs Some Work?
Save The Time & Hassle With Our Listing Concierge!
Does your property need some TLC or would having some improvements help you fetch top dollar? With our new listing concierge service we will coordinate getting your home all fixed up and ready to sell. We will manage the entire process of getting your home ready and all decked out with the latest trends, designs and materials. Our contractors are all licensed, bonded, and insured and do excellent work. Best of all, there is no money due up front. This saves you the time and expense of interviewing contractors, managing the work, and all the headache that goes along with fixing up a property. This enables our clients to position their property as "move in ready" to capture maximum buyer interest.
When we renovate homes, our clients receive on average a 150% return on investment!
We have negotiated great terms with our contractors and they don't get paid until the work is done and the home is sold.
|
|
|
488 E Ocean Blvd #P9
Long Beach 90802
2 Bed | 1.5 Bath | 1447 SF | $799,900
Experience Luxury Living with Breathtaking Panoramic Views in this Rare Two-Story Penthouse! AMAZING VIEWS!! Discover unparalleled luxury in this stunning 18th & 19th-floor penthouse in the prestigious Aqua high-rise building in downtown Long Beach.
|
|
|
2101 E 2nd St #205
Long Beach 90803
2 Bed | 2 Bath | 1064 SF | $689,900
Enjoy the ocean breeze in this beautiful condo located just 2 blocks to the beach and across from Bixby Park. Walking distance to the beach, Retro Row, Broadway Ave, dog park, Farmer’s Market, and all the great local restaurants, cafes, and nightlife.
OPEN HOUSE
Friday 3pm - 6pm
Saturday 1pm - 4pm
Sunday 1pm - 4pm
|
|
|
6600 Warner Ave #182
Huntington Beach 92647
1 Bed | 1 Bath | 765 SF | $425,900
Highly sought after top floor condo at Villa Warner iin Huntington Beach! This beautiful condo offers plush carpeting, smooth ceilings, recessed lighting, large living room with sunny balcony! Villa Warner is a gated community and offers a large pool, spa, cooking area, weight room, billiards room, Extra storage, close to the Ocean, shopping & restaurants.
|
|
|
1168 E 10th St #224B
Long Beach 90813
2 Bed | 2 Bath | 698 SF | $410,000
Great opportunity to own this nicely updated 2 bedroom, 2 bath, top floor corner condo with views of Signal Hill. Just a short drive to downtown Long Beach and to the beach!
|
|
|
525 E Seaside Way #1508
Long Beach 90802
2 Bed | 2 Bath | 1030 SF | $790,000
Enjoy breathtaking ocean views from the living room, bedrooms and the patio in this modern luxury 2 bed, 2 bath highrise condo. Short distance to the beach, harbor, Shoreline Village, Terrace Theater, restaurants, nightlife, and so much more!
|
|
|
3022 Bostonian Dr.
Rossmoor 90720
4 Bed | 3 Bath | 2,612 SF | $1,700,000
Welcome Home - Updated Kempton model home featuring 4 bed, 3 baths in Rossmoor. Located within a short distance to parks and shopping. Just a short drive to the Seal Beach pier. Great schools in the award winning Los Alamitos school district.
|
|
|
700 E Ocean Blvd #607
Long Beach 90802
1 Bed | 1.5 Bath | 880 SF | $625,000
Amazing ocean views in this beautifully remodeled open floor plan condo at the iconic International Tower! This beautifully updated modern high-rise condo features hardwood flooring, fresh interior paint, scraped ceilings, and is light and bright with expansive ocean views.
|
|
|
1985 San Francisco Ave.
Long Beach 90806
3 Bed | 2 Bath | 1,509 SF | $1,020,000
This historic gem awaits you in the charming Wrigley neighborhood of Long Beach! This gorgeous Spanish home, built in 1928, is full of charming curb appeal with its gated courtyard, porte cochere, red-tiled roof and front steps leading to the turret entry!
|
|
|
|
