Interest rates trending down

In a sign that should bring a smile to the faces of homebuyers, daily and weekly average mortgage interest rates are on a downward trajectory in the wake of recent bank collapses. This could help to ease inflation and get the volatile market back on track in time for a summer warming.

While these data sets come from multiple sources with different methodologies to calculate their figures, the trends are extremely similar. That said, it can be difficult to predict short-term rate changes, so it’s important to keep the big picture in mind. For example, despite a spike over the past year, rates remain well below where they were in the 1990s.

Natural gas ban on hold

The Ninth Circuit Court of Appeals has overturned the City of Berkeley’s decision to ban natural gas infrastructure in all new construction. And the funny thing is, both sides of the case say they’re fighting for the environment. So who is it? Find out more from the Chronicle.

State of the nation

Looking at the national economy, the Fed is ramping up to another 25 bps rate hike at their May meeting, but the job market isn’t feeling the recession burn. Unemployment sits at 3.5%, private payroll is on the rise, and 236K jobs were added in the past month. Meanwhile, interest rates remain unpredictable day to day.

When the Fed speaks, markets listen.

ICYMI: In an ongoing quest to fight inflation, the Federal Reserve recently raised its benchmark rate by 0.25 points to 4.75%-5%. So what does that mean for the housing market? The primary impact is reduced demand as buyers think twice about taking out long-term loans. Ironically, less demand could lead to lower home prices.

The Skimm explores this conundrum.

Water restrictions rolled back

Governor Newsom announced that he’s ending the call for a statewide voluntary 15% reduction in water use in place since July 2021.

Meanwhile, local water agencies that were expecting just 35% of requested supplies from the state are now on tap to get 75%.

The 3.1 million acre-feet of water that will provide equates to more than double the original projection of 1.4 million acre-feet.

*In case you’re wondering, an acre-foot is about 326,000 gallons!

Here’s more on the story from the LA Times.