I hope you’re having a great week! I wanted to share a quick update on the latest mortgage and housing market trends, as there’s some interesting news that could benefit you.
You might have heard that the Federal Reserve recently held its key interest rate steady, maintaining the Fed Funds Rate at a target range of 4.25 percent to 4.50 percent. While this particular rate directly influences short-term loans like auto loans and credit cards rather than directly impacting mortgage rates, the updated Summary of Economic Projections did surprise markets by forecasting higher inflation for the second half of 2025.
This “higher for longer” stance on rates signals the Fed’s cautious approach to managing inflation amidst an uncertain economic landscape. Despite this, the good news for you is that 30-year fixed mortgage rates have actually edged lower, reaching their best levels since April! Freddie Mac reported the average 30-year fixed rate down by .03 percent as of June 18th. This movement, coupled with increasing housing inventory, could indeed be the spark many potential homebuyers have been waiting for.
Beyond the Fed’s actions, the market continues to grapple with economic uncertainty, partly due to upcoming tariffs expected to increase costs for consumers starting July 9th, and subtle shifts in the labor market. Even with Fed Chair Powell downplaying massive layoffs, notable job cuts like those at Microsoft underscore the ongoing adjustments in the employment landscape. This nuanced environment, while presenting challenges, can simultaneously create unique opportunities for savvy buyers.
On the housing front, while the U.S. median home sale price hit an all-time high of $396,500 just over one week ago, the market dynamic is undeniably shifting. We’re seeing more homes available, with active listings jumping a significant 14.5 percent year over year—the largest annual increase in over a year. Importantly, sellers are showing greater flexibility. The median asking price currently stands at $422,238, a notable $26,000 higher than the median sale price. This 6 percent gap, along with a 1.5 percent decrease in pending sales despite growing inventory, indicates that you, as a buyer, likely have more leverage than before. Homes are sitting longer on the market, and those that are overpriced, even slightly, are far more likely to invite negotiation from potential buyers. This means strategic offers and thorough home inspections are becoming even more critical.
What does all this mean for you? It means that even with headlines highlighting market shifts and economic uncertainties, your potential to find the right home at a favorable term is improving. Don’t let uncertainty overshadow your homeownership goals. Now is a crucial time to be well-informed and strategic in your approach.
I’m here to help you navigate these trends and understand what they mean for your unique financial situation and homeownership aspirations. Whether you’re looking to buy, refinance, or simply want to explore your options, let’s connect. We can discuss personalized strategies to leverage the current market conditions to your advantage.
Reach out anytime. I’m always happy to be a resource for you. You can simply send me an email or reach out via call or text to 818.307.6072.
