THE ALLMANAC

Federal Reserve Expected to Cut Rate Again

U.S.: All eyes will be on the Federal Reserve next week as investors are betting on another rate cut before the end of the year. The Fed cut the federal funds rate by one-quarter percent at its last meeting in October. The Federal Open Market Committee meets again on December 9 and 10, at which time policymakers are expected to cut the rate by another one-quarter percent, buoyed by recent economic data. That cut in itself will have little impact on mortgage rates, which are tied to Treasury yields. Even so, economists at Realtor.com say that mortgage rates will stay just above 6% through 2026. That and other factors, such as higher incomes for some homebuyers, could signal that home purchases will be more affordable even with rising home costs, the economists said.

DFW: There will be some movement soon on the old Valley View Center in North Dallas. Development around the once-thriving 100-acre shopping center has been stalled for years due to finger-pointing from city officials and developers. Now, an $85 million mixed-used project has been announced that will encompass about four acres at Preston and Dillbeck Lane. The development will include a six-story, 300-unit apartment complex plus about 20,000 square feet of retail space. The project will be headed by Anthem Development of Dallas in a partnership with Beck Ventures and another joint venture that includes the Toyota and Panasonic corporations. Infrastructure and construction will take the project into 2028. Multibillion-dollar plans for the redevelopment that include restaurant, retail, residential and commercial spaces apparently remain on the table.

U.S.: Mortgage applications continue to ride a wave, surging toward the end of November to the highest level in two years. The Mortgage Bankers Association said that applications for home purchases spiked 7.6% at the week ending November 21, but dropped 1.4% a week later. But keep in mind that also was a shorter week that included the Thanksgiving holiday and Black Friday, when consumers’ minds are typically on other subjects. The typical mortgage rate for a 30-year fixed loan was down to 6.32% at the end of November. Applications for mortgage refinancing also were down, but adjustable-rate mortgage applications jumped slightly at the end of the month.

U.S.: Home insurance rates in Texas are now the third-most expensive in the country. Unlocking America’s Future, an organization that tracks the insurance industry, says in its latest report that home insurance rates in the Lone Star State have jumped more than 50% since 2019. The spike impacts nearly every homeowner category, the organization said, but hits low-income homeowners the most. The organization said that many insurance companies also rely heavily on aerial photography, rather than human inspection, to either assess damage or review for coverage and oftentimes challenge or do not pay claims. It said that unpaid claims have increased from 35% in 2004 to nearly 50% in 2024. Another report from MoneyGeek says that Texans pay an average of more than $8,600 each year for home and car insurance.

BIG APPLE: Billy Joel finally has found a buyer for his Gotham condo: his own daughter. The multi-Grammy winner recently sold the 1,600-square-foot, two-bedroom, two-bath condo in Nolita, just north of Little Italy in Manhattan, to his daughter Alexa. Joel bought the condo 15 years ago for $3.3 million after his divorce from Katie Lee, the chef, author and Food Network television co-host. Joel also is trying to unload his multimillion-dollar estate on Oyster Bay, on the North Shore of Long Island. The singer announced several months ago that he was canceling his 2026 tour because of therapy needed for a brain disorder. As for the sale of his condo to his daughter, it seems that the purchase was merely a legal formality between family trusts owned by the pair. Apparently, Alexa has been living in the condo for years.

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