Derek Baker

09/18/2026

Week in Review (9/18/2026)
Hi, this is Derek Baker with your weekly market update.

As widely expected, the Federal Reserve raised its benchmark Federal Funds Rate by 25 basis points. This was the Fed’s first rate hike in three years and its first rate change this year, following five consecutive meetings with no change.

Keep in mind, the Fed Funds Rate is the overnight rate banks charge each other and is not the same as mortgage rates.

The decision was unanimous, with the Fed pointing to elevated inflation as a key reason for the move. The latest projections also suggest another rate hike could come this year, with 16 of 18 officials projecting a higher Fed Funds Rate by year-end.

In housing news, new construction cooled in August, while builder confidence remained subdued. Higher mortgage rates, labor shortages, and elevated construction costs continue to weigh on builders.

The resale market showed a modest improvement. Pending home sales rose 0.3% from July to August, but remained 4.7% below a year ago. Even with higher mortgage rates, buyers are still moving forward. NAR Chief Economist Lawrence Yun said buyers were “steadily entering into contracts” last month.

Looking at the broader economy, retail sales jumped 1.2% in August, with 12 of 13 retail categories reporting gains. Initial unemployment claims remained relatively low at 196,000, while continuing claims stayed elevated at 1.73 million.

If you're thinking about buying a home, refinancing, or simply have questions about today's market, I'm happy to help

09/11/2026

Week in Review (9/4/2026)
Hi, this is Derek Baker with your weekly market update.

Labor market data was the main focus this week, led by Friday's jobs report from the Bureau of Labor Statistics. They reported that the economy added 162,000 jobs in August, nearly triple what economists had expected, while the unemployment rate held steady at 4.1%.

However, other labor market reports painted a different picture. ADP estimated that private employers added just 38,000 jobs in August, the slowest pace since January. Revelio Labs came in at a similar level, estimating 36,500 new jobs. Healthcare accounted for a significant share of those gains, reflecting continued demand as the population ages rather than a broad pickup in hiring across the economy.

Job openings totaled 7.27 million in July, although the June figure was revised significantly lower. One positive sign is that initial unemployment claims remain relatively low, suggesting layoffs are still limited. However, continuing claims remain elevated, meaning people who do lose their jobs are taking longer to find new ones.

These labor market reports are important as the Federal Reserve considers its next interest rate decision. The next major data point is the August CPI inflation report on September 11, ahead of the Fed’s September 15-16 meeting, which could ultimately sway the Fed’s decision to keep its benchmark Fed Funds Rate unchanged or raise them.

If you're thinking about buying a home, refinancing, or simply have questions about today's market, I'm happy to help.

09/02/2026

The power of homeownership

Imagine turning your monthly expenses into a growing investment, something that could multiply your net worth exponentially.

Not a lot of people know this, but the average homeowner's net worth is 40 times that of a renter.

Right now, if you’re renting, you're paying someone else’s mortgage, essentially filling their pockets, but getting zero in return for your own financial future.

Enter homeownership. It's not just a roof over your head; it's equity in your pocket. In fact, on average, two-thirds of a person's net worth comes from home equity!

Plus, home values continue to appreciate and some of the most respected companies, like Case-Shiller, Cotality, MBS Highway and others, forecast that real estate values are expected to appreciate into the foreseeable future.

Switching from renter to homeowner is simpler than you might think. It's a strategic move towards securing your financial future.

I'm here to guide you. Reach out, and let's explore a personalized buy vs rent scenario tailored just for you.

07/17/2026

Week in Review (7/17/2026)
Hi, this is Derek Baker with your weekly market update.

June brought some welcome inflation news, with both consumer and wholesale inflation coming in lower than expected. Consumer prices fell 0.4% for the month, while annual inflation slowed to 3.5%. Core inflation, which excludes food and energy, remained unchanged from May, while wholesale prices also declined, helped by lower energy costs.

This is important because the Fed closely watches inflation when making decisions about its benchmark interest rate. The Fed will continue monitoring inflation trends, labor market conditions, and geopolitical developments in the Middle East as it evaluates future policy decisions.

In housing, pending home sales, which measure signed contracts on existing homes, declined 5.4% from May to June, ending a four-month streak of gains. The report highlights just how sensitive buyers remain to mortgage rates and affordability.

Housing starts made a strong comeback in June, rising 19% after a steep drop in May and beating expectations. Building permits, a leading indicator of future construction, dipped 3%. Builders remain cautious as affordability challenges, elevated mortgage rates, and higher construction costs continue to create headwinds for new home construction.

Looking at the broader economy, retail sales rose 0.2% in June. Lower gas prices reduced sales at gas stations, but excluding gasoline purchases, retail sales increased a stronger 0.7%, suggesting consumer spending remains resilient despite ongoing economic uncertainty.

Finally, oil prices moved higher as tensions between the U.S. and Iran escalated, making energy prices another trend worth watching in the weeks ahead.

07/14/2026

09/08/2025

Week in review (9/5/25)
Hello, this is Derek Baker with your weekly market update.

Last week’s inflation report came in right on target, shifting this week’s focus to the job market – and the data shows signs of a slowdown.

The latest report from the Bureau of Labor Statistics showed the U.S. added just 22,000 jobs in August. This followed ADP’s report that private employers added just 54,000 jobs, with both figures well below expectations. Continuing unemployment claims have stayed above 1.9 million for 15 straight weeks, meaning more people are out of work for longer. Job openings also dropped to a 10-month low.

So, why does this matter?

This weaker labor data has helped the Mortgage Bond market improve, which in turn is helping mortgage rates trend lower – welcome news for homebuyers and homeowners. It also matters because the Federal Reserve closely monitors both inflation and employment when making interest rate decisions.

When inflation is high, the Fed typically raises rates to cool spending. But when the economy starts to weaken, rate cuts are often used to stimulate growth.

Fed Chair Jerome Powell recently noted that a rate cut is getting closer, depending on how the data unfolds. Based on what we’ve seen so far, a cut seems to be a lock at the Fed’s next meeting on September 17.

Just a quick reminder: when the Fed adjusts rates, they’re changing the Fed Funds Rate, a short-term rate banks use to lend to each other. It doesn’t directly set mortgage rates, but it does influence them, along with other borrowing costs.

Thinking about buying, refinancing, or just want to better understand what this means for you? Let’s connect. I’m here to help.

08/06/2025

The cost of waiting on your home purchase.

Are you hesitant to buy a home today due to higher interest rates? You're not alone.

Many potential homeowners delay their purchase, waiting for rates to drop. But what if this delay costs more than you think?

By delaying a purchase, you risk foregoing significant appreciation gains, potentially exceeding any financial benefits from lower interest rates. Lower rates would also increase competition and put additional upward pressure on home prices.

It’s time to talk strategy.

04/29/2025

Just received a "clear-to-close" on a new build purchase down in Florida for one of my self-employed borrowers! It wasn't an easy one but we did it! I can't tell you how happy I am to hear those words "clear-to-close" within 15 days from start! I'm so happy for them and am grateful for the opportunity!
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03/25/2025

Spring home maintenance tips:

Spring is officially here! As the weather starts to warm, here are a few seasonal home maintenance items to cross off your list.

Inspect your driveways and pathways for any cracks and use binoculars to see if any shingles have come loose on your roof.

Clear any debris from gutters and make sure downspouts will drain away from your foundation.

Check your outside faucets, hoses and sprinklers for any frost damage.

Make sure window screens and screen doors are free of holes or tears so bugs remain outside.

Inspect your fence or deck for any loose or warped boards to keep your yard safe for friends, family and pets.

Examine your patio furniture for signs of rust or tears and wash outdoor cushions using the manufacturer's recommended method.

Schedule a service for your air conditioner so you know it's in working order before you really need it.

Have a fun and relaxing spring season ahead!

02/21/2025