TLDR: Spring is in the process of springing in the housing market for first home buyers, thanks to strong income growth, low unemployment, lower prices and early signs mortgage rates have peaked.
FOOP (Fear Of Over Paying) is about to flip back to FOMO, unless global central banks pull the rug out from under the market heading into summer with big new rate hikes to beat down uncooperatively high inflation rates.
Mortgage brokers, agents and CoreLogic report more first home buyers have started asking for advice, attending open homes and buying homes in July, August and early September. But have they moved too soon? They should know within a few days if the US Federal Reserve and local banks dump buckets of ice on the open homes with big new rate hikes. ANZ jumped first last night with 30 basis points of mortgage rate hikes in anticipation of a ‘bazooka’ tomorrow morning from the Fed. See more below.
Elsewhere in the news overnight, NATO accused Russia of escalating the war in Ukraine by launching annexation referendums in conquered territory, Sweden’s central hiked its main interest rate by a more-than-expected 100 basis points, and traders fearing a 100 basis point hike from the Fed tomorrow morning dragged US stocks down around 1%.
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