Houtan HormozianExpert on Real Estate, Finance and PropTech

December 17th 2024 Market Update Heres What You Need to Know

17 Dec 2024 · 2 min

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1:40

In this brief market briefing, the host outlines several key economic developments affecting the housing market. Mortgage rates are under pressure as bond prices fall and the 10‑year U.S. Treasury yield climbs to 4.405%, a rise from earlier in the day. Consumer spending remains robust, with November retail sales up 0.7% versus a 0.5% forecast, driven by early holiday shopping. A new factory production and efficiency report was released, and the Homebuilder Confidence Index has risen, signaling optimism among builders. Looking ahead, the Federal Reserve’s interest‑rate decision is scheduled for 2 PM tomorrow, with speculation of a modest rate cut and forward guidance for the coming year. An update on new‑home construction and building permits will also be published tomorrow morning, serving as a health check on the housing market. The host concludes by explaining how these dynamics could affect prospective homebuyers, sellers, and refinancers, urging viewers to stay informed as rates and market conditions evolve.

Chapters

Here is a quick look at what's happening in the market today. Mortgage rates might increase due to a drop in bond prices and a rise in Treasury yields. Currently, the 10-year U.S. Treasury yield stands at 4.405%, slightly higher than it was this morning. Why is this happening? Consumer spending is up. November saw retail sales grow by 0.7%, surpassing the expected 0.5%. This boost likely comes from early holiday shopping sprees. The economy remains robust despite rising interest rates. Consumer spending continues strong. What's on today's agenda? A report detailing factory production and efficiency was released this morning. We've also received an update on the Homebuilder Confidence Index. Great news: confidence has risen. Looking ahead to tomorrow, it's a big day. The Federal Reserve, which makes key decisions about interest rates. will announce their latest decision at 2 PM. There is speculation that they might slightly lower interest rates, but everyone will be listening for their plans for the next year as well as their quarterly economic and rate predictions. Additionally, tomorrow morning brings us an update on new home construction and building permits, key indicators of the housing market's health. What does this mean for you? If mortgage rates rise, borrowing money for a home could be pricier. So if you're considering buying, selling, or refinancing a home, or know someone who is, now is the time to stay informed. That's all for today. Have an amazing day.