Hey Sarah,

I wanted to reach out with a quick housing market update after some moderate swings in the last few weeks. Rates eased a bit last week, but the Federal Reserve's outlook for the rest of the year is the bigger story driving the market right now.

3 Things to Know About the Housing Market:

1. Mortgage Rates Eased Slightly Last Week: Oil prices slid to a four-month low last week, easing some of the inflation pressure that's been pushing rates higher. That translated into a modest pullback in the 30-year fixed rate, which continues to hover around the mid-6% range.

2. The Fed Is Signaling a Hike, Not a Cut: At his first meeting as Fed Chair, Kevin Warsh and the rest of the Fed held rates steady in June, but the bigger headline was the shift in outlook. Most policymakers now expect at least one rate hike before year-end, a reversal from earlier expectations of a cut. Behind that shift: the labor market remains healthy, with unemployment holding at 4.3% and steady job growth, while inflation is still running above 4% year-over-year, largely driven by energy costs. That mix of a solid job market and stubborn inflation is exactly why the Fed is in no hurry to cut. 

3. A Stable Housing Market is a Healthy One: With rates holding in a fairly narrow range recently, there's real reason for optimism if you're thinking about buying or selling. Price cuts are becoming more common in several markets, giving buyers more room to negotiate, and pending home sales were up year-over-year in every major region last month, giving sellers the kind of demand needed to move their home. That combination means more options and more leverage for buyers than the headlines might suggest. 

There's a big jobs report being released tomorrow morning, which should give us a better outlook on any movements coming in the next month. 

In the meantime, if you have any questions or want to talk through your options again, feel free to reply to this email, and we'll set up a time to talk.

Talk soon,
Alex Morgan
NMLS: 123456