Rates corrected a bit last week but are still around 6.5%. With inventory climbing, now’s a great time to re-engage your buyers. We’re emphasizing the cost of waiting—take a look at our new calculator: Cost of Waiting Calculator
| Data Check: Applications: UP 6.9% this week. As expected with lower rates. We are slightly positive over the last 9 weeks. (MBA) Inventory: 693K homes on the market. Up 1.5% from last week and 40% more than last year. (Altos) Price reductions: Up to 38.5% of active inventory. Slight drop from last week. Likely trending to >40% this fall. (Altos) Rates: Huge rate drop to 6.4%. (Mortgage News Daily) We continue to see local markets diverge in terms of supply and demand. For Buyers: Inventory is up, and rates are down—this is the current state. But this moment won’t last. Applications were up 6.9% just last week, so now is the time to act. For Sellers: We’re approaching the typical seasonal decline in home values, which could be more pronounced this year due to the rise in inventory. Remember, there are 40% more homes on the market now compared to the same time last year. For Investors: “60% of single-family landlords say they’re likely to purchase at least one investment property in the next 12 months.” – Resi Club |
| Financial Market Update |
The Inevitable Correction Last week, rates inched back up from Tuesday to Thursday, essentially leveling off after the sharp drop following the weaker-than-expected jobs report. The primary driver was several days of weak bond sales. Despite significant swings, it was a fairly typical bounce after the previous week’s movements. This week, we’re watching the Producer Price Index (PPI) and Consumer Price Index (CPI) closely. The inflation data will be a key indicator of economic health and is likely to impact interest rates again. We anticipate volatility in the market. All eyes are on the Fed in September to see if they follow through with the expected 50 bps rate cut. However, remember that this drop is likely already priced in. If your clients are waiting for “big news,” they might be disappointed. Now could be a good time to lock in rates during this dip. |
