MLS Organizations Making a Stand Against DOJ!

Weekly Mortgage Update April 1st

Author

Michael Cassano
April 01, 2024

Hey everyone! Hope your Easter weekend was filled with joy, sunshine, and lots of delicious food! Get ready for an exciting week as we dive into the second quarter of 2024! Plus, don't miss out on a special session we have lined up for you this Wednesday to help make sense of all the buzz around the NAR updates.

Rates ended FLAT compared to last week, and volatility was LOW. Rates continue to be in the high 6’s for most loan types without paying discount points. Paying discount points can get you in the low-to-mid 6’s.

A Steady Week for Mortgage Rates

It feels like forever since we've seen rates hold steady throughout an entire week! The Easter break meant fewer headlines, with the most notable piece of news being the February PCE inflation data, released on Friday. February’s PCE inflation, the Fed's go-to for measuring inflation, ticked up to 2.5%, matching expectations but marking the first increase since August 2023. This uptick isn't great news for those hoping for rate cuts.

Key Takeaway : With inflation still above the Fed's 2% target, it's too soon to expect rate cuts. The Fed is cautious about reducing rates prematurely and will likely maintain higher rates until inflation is securely on its way to the 2% goal.

MLS Associations Stand Up to DOJ

This Wednesday saw the Council of Multiple Listing Services (CMLS) stepping up to challenge a statement of interest from the Department of Justice (DOJ), which proposed banning sellers from offering commissions to buyer brokers. The DOJ's stance suggests that buyers and sellers should handle their own fees separately, a move that could significantly alter the current commission structure.

The thought of the Department of Justice (DOJ) dipping their toes into the realm of real estate commissions raises more than a few eyebrows. It seems they're lacking the deep dive knowledge needed to fully understand the repercussions such policies could have on the real estate landscape. Just picture the potential fallout on first-time homebuyers, those in lower income brackets, and minority groups.

It looks like the government's pointing fingers at the existing commission setups as the root of housing disparities. Luckily, we've got trade groups like the CMLS taking a stand to push back against these notions.

Key Takeaway: The Council of Multiple Listing Services isn't holding back in their critique of the DOJ's suggestion to separate commissions. This issue deserves our full focus, given its potential to shake up the housing market profoundly, possibly even beyond the shifts we're anticipating from the NAR settlement.

NAR Settlement - Separating Fact from Fiction

The NAR settlement has everyone buzzing, and it's time to clear the air. We're hosting a must-attend webinar on Wednesday, April 3rd, featuring an Industry Expert and a National Top Producing Realtor to dive into the real impact vs. the hype, how it affects our industry, and strategies to stay ahead. This free webinar is your ticket to essential insights and strategies: Register Here

Insiders suggest the settlement could dramatically change the Realtor landscape, reminiscent of the shifts seen in the mortgage industry after the 2008 market crash. The takeaway here is clear: Being informed and mastering effective communication will be key to navigating these changes successfully.

Looking Forward to a Pivotal Week

The spotlight this Friday will be on the February Jobs Report, a crucial indicator of whether the job market continues to sizzle or is starting to show signs of cooling. A softer job market might just give the Fed the nudge it needs to consider rate cuts sooner rather than later. Additionally, with 14 Fed speakers scheduled this week, we’re likely to hear a consistent message about future rate cuts, all dependent on incoming data.

Here's to a week filled with learning, growth, and staying one step ahead in the ever-evolving world of real estate!