Introduction

The U.S. economy, like a seasoned sailor, has weathered storms and charted new courses. In this economic voyage, we’ll explore the latest trends, challenges, and opportunities in the housing and mortgage markets. Buckle up, because the waves are high, and the compass is pointing to uncertainty.

Economic Landscape

GDP Growth and Consumer Spending

• Q1 2024 GDP Growth: A modest 1.4%¹. Not a sprint, but a steady jog.
• Consumer Spending: Slowed to 1.5%. Shoppers tightened their belts, perhaps eyeing the horizon for signs of stability.

Labor Market

• June Job Additions: 206,000. A cooling breeze in the labor market¹.
• Unemployment: Crept up to 4.1%. Not alarming, but worth noting.

Inflation

• Core PCE Inflation: Rose 0.1% in May. Not a tempest, but keep an eye on the barometer.

Housing Market Swells and Storms

Mortgage Rates

• High Mortgage Rates: Like choppy waters, they slowed the housing market.
• May Home Sales: Dropped 2.3%. Buyers hesitated, waiting for calmer seas.

Delinquencies

• Mortgage Delinquencies: Steady. No rogue waves here.
• Auto and Credit Card Delinquencies: A rising tide. Keep life jackets handy.

Navigating Ahead

Economic Outlook

• Higher Interest Rates: On the horizon. Brace for impact.
• Weaker Growth: Adjust your sails.
• Potential Rate Cut in 2024: A wildcard. Stay vigilant.

Conclusion

As we sail through these uncertain waters, homeowners, buyers, and investors must trim their sails and stay nimble. The compass may waver, but with knowledge as our anchor, we’ll navigate toward calmer shores.

Fair winds and following seas! 🌊⚓

¹: Freddie Mac Economic Outlook, March 2024

Sources:
(1) Economic, Housing and Mortgage Market Outlook – March 2024 | Spotlight …. https://www.freddiemac.com/research/forecast/20240320-us-economy-remains-robust.
(2) Economic, Housing and Mortgage Market Outlook – February 2024 …. https://www.freddiemac.com/research/forecast/20240226-us-economy-defied-expectations.
(3) Housing and Mortgage Market Outlook for 2024 by Freddie Mac. https://www.noradarealestate.com/blog/housing-and-mortgage-market-outlook-for-2024/.
(4) Forecast | Fannie Mae. https://www.fanniemae.com/research-and-insights/forecast.