Raleigh mortgage rates have been a topic of concern for homebuyers and real estate professionals as they have drifted higher in February 2023. As February 2023 ended and March 2023 has started, the bond market has seen several days of consolidation. This has led to uncertainty about the future direction of mortgage rates, and many are wondering whether they will continue to rise or fall.
Raleigh Mortgage Market Update with Kevin Martini (video edition of Martini Factor produced 03.02.2023)
- Consolidation occurs when the market trades within a range or trades sideways.
- No one can predict whether the market will move up or down until there is a catalyst.
- The Stochastic indicator is used to analyze the technical aspects of the bond market.
- Higher bond prices lead to lower mortgage rates.
- The Federal Reserve has a significant impact on mortgage rates.
- Inflation and unemployment are fundamental factors that affect mortgage rates.
- The Employment Report and CPI data are potential catalysts for mortgage rates.
- Understanding the four stages of buyer demand can help homebuyers make the most of the current environment.
Expert Analysis and Insights by Kevin Martini
Over the last 7 trading days, the market has seen consolidation, which is when the market trades within a range or trades sideways. Until there is a catalyst, no one can predict whether the market will move up or down. However, once consolidation is broken, it may lead to a bigger move up or down. This is why the Martini Mortgage Group deploys technical analysis to help the families they serve.
From a technical perspective, we have to look at the stochastic. For Certified Mortgage Advisor and Raleigh mortgage broker Kevin Martini, the catalyst is when the stochastic goes over 20%, because that means momentum is shifting. Right now, momentum is towards the downside. To support this thesis, let’s look at October 2022 and January 2023. There was a move above 20% on the stochastic, which was the catalyst for higher bond prices. When there are higher bond prices, there is a lower yield, which means lower mortgage rates.
Currently, there is consolidation in the market, and it is trying to form a base. From a fundamental point of view, there is not a lot of news that is going to move the market, in Kevin Martini’s opinion. There is potential for more downside based on technicals.
Where are Raleigh mortgage rates headed?
So where are Raleigh mortgage rates going? Is the bond price going to rise and cause lower Raleigh mortgage rates or are bond prices going to go lower and cause even higher Raleigh mortgage rates? The Martini Mortgage Group has two days on the radar as a catalyst. The first is March 10th when the Employment Report is released, and the second is March 14th with the release of the CPI data.
It is Kevin Martini’s opinion that these reports will improve mortgage rates, but there are no guarantees. If March 10th and 14th work out the way he predicts, it is optimistic to think we will get to the 200-day moving average, but it is possible to get to the 50-day moving average. If that happens, there will be an improvement in Raleigh mortgage rates.
Despite the current uncertainty, there is still an opportunity for homebuyers. In fact, it is an epic opportunity for a homebuyer. To maximize this opportunity, homebuyers must understand the four stages of buyer demand. These four stages are Awareness, Interest, Desire, and Action. Understanding these stages can help homebuyers make the most of the current market conditions.
If you are a homebuyer or if you work in the real estate community, it is essential to understand these stages. There was a great episode of the Martini Mortgage podcast, episode 173, called “4 Stages of Buyer Demand”. Perhaps a better name for this episode would be: “How homebuyers can use the 4 stages of homebuyer demand to maximize advantage”.
In closing, Raleigh mortgage rates have drifted higher in February 2023, and the bond market has seen several days of consolidation. The technicals indicate that momentum is towards the downside, but there is potential for improvement based on the upcoming Employment Report and CPI data. Homebuyers must understand the four stages of buyer demand to maximize the opportunity in the current market conditions. If you have any questions about the current state of the market or about mortgage rates in Raleigh, give Kevin Martini or his business partner and fellow mortgage strategist Logan Martini a call by dialing (919) 238-4934.
3 FAQ for Homebuyers to Know About Raleigh Mortgage Rates
Q: What is the bond market, and how does it affect mortgage rates in Raleigh?
A: The bond market is a financial marketplace where investors buy and sell bonds. Raleigh mortgage rates live in the bond market because the prices of bonds influence mortgage rates. When bond prices are high, mortgage rates are low, and vice versa.
Q: What is the Stochastic indicator, and why is it essential for analyzing the bond market?
A: The Stochastic indicator is a technical analysis tool that measures the momentum of a financial asset. It is used to analyze the bond market because it can help predict when the market is about to shift.
Q: What are the potential catalysts for Raleigh mortgage rates in March 2023?
A: The Employment Report, which is released on March 10th, and the CPI data, which is released on March 14th, are potential catalysts for Raleigh mortgage rates.
Raleigh mortgage rates have drifted higher in February 2023, but the current market environment presents an epic opportunity for homebuyers. Understanding the technical and fundamental factors that affect mortgage rates can help individuals make informed decisions about their financial future. Moreover, knowing the four stages of buyer demand is critcal.