Disinflationary Trend Continues DESPITE OIL & AUTOS! WHOOAA!
REMINDER #1: 14-DAY CLOSINGS WIN DEALS! Two of our clients got into contract yesterday alone with the help of our Fast 14 Calendar-Day Close in multiple offer situations. In both situations, our clients were not the highest offer too.
REMINDER #2: JVM HAS “APPROVED AND READY TO MOVE” LISTS ON OUR WEBSITE – for both CALIFORNIA and TEXAS. The lists show approximately 250 of our most recent pre-approved clients along with their agents, their price range, and their target areas. EMAIL OUR TEAM to request access to the list.
REMINDER #3: COMMERCIAL BANKS ARE LAYING OFF … EVERYONE. Some banks are no longer funding any mortgages while others are experiencing severe service issues. Our interest rates still can’t match some of the major commercial banks for certain borrowers, but our service levels run circles around all of them. Hence, if anyone needs better service and a better reputation to get a jumbo offer accepted, we’re here to help!
INFLATION CONTINUES TO FALL – DESPITE TWO HUGE SURPRISES!
I have been touting the May 10th Consumer Price Index Report (for April inflation numbers) for months now in blogs and in my talks.
I touted it with so much fanfare because Barry Habib has been doing so for good reason: The April of 2022 reading was high, so it made it much more likely that April of 2023 would look much better in a “year-over-year” comparison.
Further, Barry expected shelter costs to come down along with many other costs, bringing down CPI that much more.
The good news is that Barry was correct again, as CPI both fell and came in under expectations, causing rates to fall.
And that is why Lyn Alden tweeted this: Headline CPI for April came in at 4.9% this morning, which continues the disinflationary trend.
Barry Habib of course dug into the numbers in much more detail pointing out the big surprise: Inflation fell sharply even though both used car and oil prices were way UP for April.
Barry was actually enthused by this news for two reasons:
- it shows how strong the disinflationary pressure is, outside of used cars and oil; and
- it is a clear indication of how much more inflation will fall in the coming months, as used car prices simply cannot continue to rise at the same pace, and oil prices have already dropped from $83 per barrel in April to $73 now.
Hence, Barry was still correct overall; rates still improved, and we can almost certainly still expect much lower rates this summer.
We won’t see “ZIRP” return as soon as this summer, but Barry says we will be quoting everything in the 5’s.
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