Hope your week is going well! It has been an eventful week for rates and housing, so here is what actually matters for you.
Rates ticked up to their highest point this year, and the bigger story is happening overseas. Bond yields in places like Japan and the UK have climbed to levels not seen in decades, and that pressure has spilled into our own bond market, pushing past a technical level that had been holding steady. Oil climbing back above $90 a barrel amid the ongoing situation with Iran is not helping, since higher energy costs tend to feed inflation worries, and bond markets do not love inflation.
Here’s the silver lining: the gap between Treasury yields and mortgage rates has narrowed quite a bit compared to a few years ago, so even if yields keep climbing, mortgage rates should not need to rise as sharply as they did back in 2023. This week brings a wave of labor market data, including the official jobs report, right before the Fed’s September meeting, so we should get real clarity soon on where things head.
On the housing side, the market shifted in a notable way in August. After eight straight months of growth, homes under contract actually dipped compared to a year ago, as higher rates caught up with buyer demand.
The encouraging part: sellers have not pulled back the way they did last year. Price cuts are becoming more common, now touching roughly one in five active listings, and sellers are staying patient rather than yanking homes off the market. If you or someone you know is house hunting, this is a real window to negotiate, not just on price, but on seller-paid costs and rate buydowns too.
One fun nugget: a recent survey found nearly half of Americans would consider a 3D-printed home, though most still want proof of durability and resale value first. It’s a good reminder that new technology in housing keeps arriving, and I love helping my clients sort the exciting headlines from what actually makes sense for their situation.
If there’s any support I can offer to help you prepare for your next move, I invite you to call or text me at 818.307.6072 or simply send me an email.
