Riding the Interest Rate Waves...
Manhattan and Brooklyn Market Trends: The current trajectory in market activity continues its upward trend. Buyers are gaining confidence as they anticipate further drops in mortgage rates throughout the year. They are also recognizing that the combination of lower rates and limited inventory will intensify competition, potentially leading to higher prices.
Mortgage Rates: Although rates experienced a slight uptick of approximately 0.25% this month, they remain approximately 2.0% lower than the peak observed in October. Projections indicate a mid-5% rate for 30-year fixed mortgages by the end of the year. Additionally, ARM rates are expected to revert to their historical average, approximately 0.75% lower than 30-year fixed rates, by year-end. This shift is particularly significant for our market and clientele, who show greater receptivity to these products compared to the national average.
Inflation: The Federal Reserve reports a current inflation rate of 3.4%, a decrease from 6.45% at this time last year, with their target set at 2.0%. Some argue that Truflation, considered by many as a more accurate measure, already indicates a rate of 1.87%.
The Fed and the Media: The media often portrays statements from "The Fed" without providing a comprehensive view. It's crucial to remember that the Federal Reserve consists of 12 members, and media outlets may highlight the most sensational quote from one member, often with an opinion differing from the group's average, for the sake of generating clicks.
Lending Landscape: The lending landscape is evolving rapidly with the emergence of niche mortgage products. Some lenders are actively seeking to expand and capture market share, such as in the case of second homes in the Hamptons. Conversely, major banks are scaling back their involvement. It is now more important than ever to collaborate with a lender offering a diverse range of products, rates, and investor connections to address the unique needs of each deal or client.
Local Happenings
Color Factory‘s
“Colors in Bloom”
FEBRUARY 8, 2024
Take a family trip to the all-ages and one of a kind colorful experiences, 'Colors in Bloom', the latest exhibition at SoHo's Color Factory.
Click HERE to learn more!
Lunar New Year Parade
FEBRUARY 25, 2024
Head to Chinatown to celebrate the year of the dragon! In the heart of Chinatown on Bayard Street between Mott and Mulberry, you will find dancing, festival booths, martial art performers, stunning outfits, firecrackers and more! This is an NYC tradition you don't want to miss!
Click HERE to learn more!
Lifestyle Tips and Tricks
Foolproof Paint Colors that will Sell your Home
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20 Most Affordable Places to Live in the US
With the cost of living on the rise, many Americans are on the hunt for the cheapest places to live in the U.S. that still offer a high quality of life...
Featured Listings
The Hoffman Team has you covered! With trusted colleagues in over 71 markets nationwide and team members on both coasts, we are here to help - no matter where your move takes you.
Below are some listings from our fellow team member Renato Besabe who works in both NYC and Hawaii.
