MARKET UPDATE: Extreme Volatility, A Big Week Coming

Extreme volatility continued this week. Temporary buydowns rule the market.

ANALYSIS

Oh, where to begin. 10-year treasuries hit 5% before sliding just back under that psychologically important benchmark. The GDP headline came in hot at 4.9%, but digging deeper showed a slowdown in final sales numbers. Rates responded with a nice rally. Today’s personal consumption report (inflation) came in right around expectations.

NOTE ON VOLATILITY

There is a disconnect between recent economic reports and the increasing chorus of contrary anecdotes (almost all pointing toward a slowing economy and rising consumer anxiety.) This would explain the massive swing in rates each day. Our society appears to be conflicted on which way things are headed.

WHAT’S NEXT

Next week could be a wild ride. The Fed is meeting, the Treasury is announcing a quarterly refunding, and the market is on edge.

CONCESSIONS ON THE RISE

Recently, we've noticed an increasing number of seller concessions. By far, the temporary buydown concession is the winner. It is no-risk for the buyer and provides the largest monthly payment relief (for a defined period.) Contact your preferred Greenlight loan officer to learn more.