Last week was quiet for rates. We are talking to buyers about rates dropping and inventory climbing. It is a great time to get buyers motivated. We also launched our cash offer product last week which helps your buyers win! I would love to talk about it.
Data Check:
Applications: Applications up 0.9% this week, two weeks in a row. (MBA)
Inventory: : 621K homes on the market. Up 1.5% last week and 38% from last year. (Altos)
Price reductions: Up to 36.4% of active inventory. Up another 0.9% last week. (Altos)
Rates: Rates are basically flat at 7%. (Mortgage News Daily)
We continue to see local markets diverge in terms of supply and demand. Leverage your local market dynamics.
For Buyers:
Stop waiting for rates to drop. When they eventually do, demand will surge. Take advantage of the increasing inventory now.
For Sellers:
There is ongoing concern about price softening in many markets. While it’s likely a short-term issue, it’s affecting today’s sellers.
For Investors:
Hybrid and remote work increased by 5% year-over-year. This trend is encouraging new home builders to develop in less expensive areas, opening opportunities for investors interested in long-term rental investments. (Refer to the graphic from John Burns Real Estate Consulting)
| Financial Market Update |
Is No News Good News? As anticipated, last week was quiet. Retail sales underperformed, which helped improve rates. However, on Friday, the Purchasing Managers Index exceeded expectations slightly. These two developments balanced each other out, resulting in a slight increase in rates for the week. This Friday, the Fed’s preferred inflation gauge, the Personal Consumption Expenditures, will be released. This report typically has a significant impact on the market. Additionally, there are a few minor reports and Fed speeches that may cause “micro volatility.” We expect rates to fluctuate within a reasonable range. Micro volatility can significantly affect a buyer’s monthly payment, which is why we recommend locking in rates as soon as a contract is signed. |
