It’s Not Rent To Be

Mark’s Market Update – 9/1/2022

It’s all about the jobs…

The Bureau of Labor Statistics Jobs Report is coming out tomorrow, and that will drive rates (good or bad) depending on how it comes out. The bond market won’t like stronger wages or job growth – and rates will go up as a result. In turn – lower-than-expected job growth or lower-than-expected wage growth will result in lower overall mortgage rates. We’ve been maintaining a locking bias during the last two weeks – and that’s paying off for our clients.

The best investment, even in higher-rate environments, is still a home. Rent is 100% interest. Buying a home creates a hedge against inflation – and when rates dip again – guess what happens to home values? They go up.

The market has stabilized a bit – with a larger supply of homes overall. However, the pause the market is taking won’t last forever. Demand is going to start building – and the switch will get turned on again.

Buy a home. Don’t rent. It’s not rent to be.