Should You Buy or Lease a Car?

As Memorial Day draws near, it’s hard not to look forward to celebrating Dads, Grads and Summer Vacations… but that would be getting ahead of ourselves. The month of May has a lot to offer, and is arguably one of the busiest months for young families. With end-of-school activities and the full range of spring sports seasons coming to an end, calendars can fill up quickly as we also try to get outside, shake off the winter grey and make the most of the blossoming season (and not to mention Mother’s Day!). As the days get longer (and warmer ??), I hope you find the time to enjoy every day to the fullest and make a few memories along the way – it goes by too quickly!

Market in a Minute

Interest rates had been trading in a relatively narrow range up until earlier this past week when it became clear that there is a real possibility that the Fed may decide to bump rates up one more time and the debate surrounding the debt ceiling intensified. These two factors pushed rates higher despite the latest CPI, PPI, and Jobless Claims data all indicated that inflation is continuing to cool (while labor markets remain strong). The Fed met at the beginning of the month and raised the benchmark rate for the 10th consecutive time in a little over a year by 25bps to between 5.00% and 5.25%. This increase was expected, and the bigger news at the time was that Chairman Powell indicated that this could likely be their last hike in their efforts to rein in inflation. The following week we received encouraging inflation data with Consumer Price Index and Producer Price Index coming in at expectations: for CPI we saw a 0.4% month over month increase and 4.9% year-over-year increase (down from 5.0% in March). In addition to CPI, PPI moved down to 2.3% from 2.7% in March. And just when we thought the next few months were coming into focus, the debate surrounding the US debt ceiling took center stage and a handful of Fed Governors voiced the possibility of a (previously unexpected) rate hike at their next meeting. What a difference a week or two can make, right? Current forecasts for mortgage rates for the remainder of the year from Fannie Mae (released May 10th) and the Mortgage Bankers’ Association (released April 17th) still indicate rates moving down – but of course, no one has a crystal ball and things can change… sometimes quickly!

It has been a slower start to the spring housing market this year. New listings have been slow to hit the market (down nearly 31% from last year) and a majority of homes that do come to market are going under contract just as quickly as they are listed. On a positive note, active listings are up 44% YOY with 4,620 homes on the market as of the end of April. It also appears that, even though buyers have limited inventory to choose from, they are hesitant to entertain bidding wars that go over the listing price (as was prevalent last spring), reflected in the close-to-list price of just barely over 100% — while last year at this time it was almost 107%. That said, most (but not all) buyers are still encountering some level of competition, particularly for homes that are well maintained and in more desirable locations – highlighting the importance of knowing the dynamics of each property on your list to better understand what it will take to get under contract. No doubt that the combination of higher interest rates and higher home prices have some buyers sidelined, but for those well-qualified buyers who are intent on making their homeownership goals a reality, opportunities are out there. If you or someone you know is curious about your ability to get into a new home, give me a call – you might be surprised what we can do – I’d welcome the opportunity to discuss options and provide my insight.. Who knows, perhaps you will be celebrating the official start of summer with a barbeque and a bigger view from the back patio of a new home!

Monthly Morsel: Should You Buy or Lease a Car?

This month I am sharing with you a list of the basic pros and cons of owning a vehicle versus leasing one. I’ve also highlighted some of the main factors that you should keep in mind when deciding which option to choose.