23 Jul Amazon Enters the Real Estate Space
After hitting the top of the trading channel yesterday, mortgage bonds are now heading lower. The trading range is very tight for mortgage bonds. I don’t anticipate much variance in the bond market ahead of the rate cut announcement that will come week on Wednesday. The question will be whether the cut will be a full ½%, or just the ¼% that we usually see when the Fed makes a move. At the current time, 2/3’s of economists are predicting a ½% cut. Given that the current Fed Chairman Jerome Powell is a more conservative Fed leader, it will be shocking to see him cut a full ½%. Since he was expecting a .75% increase in 2019 just about 7 months ago, I guess that anything is possible.
Today is a significant day for both Real Estate Agents as well as for Amazon, as Amazon officially entered the real estate space. In partnership with Realogy, the nation’s largest real estate company, consumers will receive complimentary home services like painting, smart home products, etc, up to a value of $5,000. The partnership will allow consumers to shop for an agent right on the Amazon website. We all know the trend of technology taking over the real estate and financial services platforms is coming. Personally, I’m excited for all the transitions and am embracing the changes. I look forward to Amazon being in the mortgage space as well. I know that this will push the average cost of a mortgage lower, thereby eliminating all the loan officers and mortgage companies that are currently gouging consumers. It will be a great change.
With mortgage bonds trading in a tight range, there is little benefit to float. Locking on short term transactions makes sense.