As summer heats up, so has the opportunity. How’s the weather where you are? I hope you are enjoying your week. As for the housing and mortgage markets, the last few weeks of July have brought some interesting shifts in the market. Here’s what’s changing in housing and why it matters to you.
Good News on the Inflation Front!
For quite some time now, inflation has been a significant topic of conversation, and rightfully so. The good news is that we’re finally seeing some real relief! Inflation continues to ease and is currently at four-year lows.
Just this past week, we received some encouraging reports. The Consumer Price Index (CPI) for June, particularly the “Core CPI” (which excludes volatile food and energy prices), came in below expectations at 2.9% year-over-year. When you look at the annualized change from January to June, Core CPI is even lower at 2.1%. This is a fantastic sign that prices are heading in the right direction and are well within the Federal Reserve’s comfort zone, hinting that interest rate cuts could be on the horizon.
Adding to this positive trend, Producer Prices (PPI), which reflect inflation at the wholesale level, showed a tame 0.0% month-over-month reading. This is great news because PPI is a leading indicator for consumer inflation. When producers aren’t facing price pressures, those savings can be passed on to you. This is especially welcome given current tariff uncertainties, and we hope to see this trend continue!
Mortgage Rates Inch Up, But Stability Persists
While the bond market has seen some volatility this month, with yields moving higher, the good news is that 30-year fixed-rate mortgage rates remain steady and within a narrow range, and still lower than they were during this same period last year. This stability, coupled with a moderately rising inventory of homes, could be just the encouragement prospective buyers need to make a move.
Shifting Sands in the Housing Market: A Potential Win for Buyers!
If you’ve been thinking about buying, or perhaps making a move, the latest data suggests that the market is increasingly favoring buyers. Even with U.S. home sale prices hovering at record highs, we’re seeing some promising trends.
Sellers are beginning to price more realistically, and the median monthly mortgage payment has actually dipped to its lowest level in four months, down to $2,699. This is despite long-term average rates slightly increasing. This smaller gap between asking and sale prices indicates that sellers are recognizing the shift towards a buyer’s market.
We’re also seeing inventory build, with active listings up nearly 12% year-over-year. Buyers are starting to come back to the market, with touring activity up 14% year-to-date compared to last year, and Google searches for “homes for sale” hitting a nearly two-year high! Even with a recent weekly drop in purchase applications, the Mortgage Bankers Association reported a 13% year-over-year rise, showing continued interest from buyers.
In many areas, especially with condos, townhouses, and newly built homes, builders are offering incentives like mortgage-rate buydowns and covering closing costs. This is a great opportunity to explore if you’re looking for extra value. While the market remains competitive in highly desirable urban centers for move-in-ready homes, the overall landscape suggests growing opportunities for buyers.
The big picture here is that despite some ongoing uncertainties, signs continue to point to an evolving market that could present exciting opportunities. Whether you’re considering buying your first home, refinancing, or curious about your options, I’m here to help you navigate these shifts and make informed decisions. You’re always welcome to connect with me! Simply send me an email or call/text me at 818.307.6072.
Please don’t hesitate to reach out if you have any questions or would like to discuss your specific situation. I’m always happy to help!
