Purchase Loan Power: Demand Surges for 4th Week in a Row

Take it to the bank: buyer interest in loans ain’t no joke.

• For the fourth consecutive week, demand for purchase loans has swooshed up faster than LeBron James on a dunk.

• Noticing the “pick-me-up” trend, bond market investors have gone all Mission Impossible, sending rates to the basement in the hope for Federal Reserve easing.

• The decline in inflation rates have got investors playing a hopeful tune on their harps. Gone are the days when inflation was as stubborn as a greasy stain on white shirts. In this economic weather, it seems inflation is behaving more like a courteous houseguest, taking its leave when it’s time.

Investors Playing Poker With Lower Rates

Bond market investors running a betting ring on rates going lower

• It’s not quite the World Series of Poker, but bond market investors are playing their own high-stakes game & pushing rates lower.

• Federal Reserve easing seems like a likely move, as inflation folds like a bad hand.

Inflation Packs Up, Calls It a Day

Inflation rates: from party-crasher to well-behaved guest

• The bad-boy inflation rate that used to crash the economic party seems to have learnt its manners. There was a time when it showed up uninvited, spiked the punch and made the whole room tipsy.

• Now, however, it’s more like that one friend who helps clean up after the party. Its subsiding dynamics are currently more of a help than a hindrance to the market.

Whimsically warm take on this

In the spirit of Scooby-Doo, the mystery of the “rising purchase loans demand” has been solved! If you thought house prices were the only thing going up quicker than Usain Bolt, think again. Purchase loans demand is matching pace. In the betting ring, bond market investors are acting as if they’ve dug up Bond, James Bond, and are coolly playing a game of Russian roulette with rates. But don’t worry, it’s all legal (& less dangerous). Inflation, on the other hand, has decided to be a good boy. Like a Labrador puppy that’s finally learnt not to chew up the slippers, inflation is showing promise of behaving itself, at least for now. In our financial soap opera, these three elements have joined forces to make headlines and they’re certainly keeping us all at the edge of our seat.

Original article: https://www.inman.com/2023/11/29/homebuyers-seizing-the-day-as-mortgage-rates-continue-to-slide/