Rates stabilized last week, and the lower rates are driving increased buyer activity. If your clients are waiting for the perfect moment, now’s the time to act before this window closes. Take a look at our: Cost of Waiting Calculator
| What You Need to Know |
Data Check: Applications: UP 16.8% this week. Buyer competition will heat up (MBA) Inventory: 698K homes on the market. Up 0.75% from last week and 40% more than last year. (Altos) Price reductions: Up to 39.4% of active inventory. Up last week. Likely trending to >40% this fall. (Altos) Rates: Up slightly to 6.6%. Complete rates below. (Mortgage News Daily) We continue to see local markets diverge in terms of supply and demand. For Buyers: Purchase applications have risen for two consecutive weeks, with 20% more buyers in the market compared to last month. As rates drop, competition will intensify. Savvy buyers should act now to maximize their buying power. For Sellers: Take a page from builders. With inventory increasing and price reductions on the rise, now is the time for sellers to drive demand. The most powerful tool in this market is the temporary buydown. Explore the Envoy Buydown Calculator here. For Investors: According to ParcelLabs, the number of single-family homes converted to rentals within six months of sale has surged 390% since 2020. |
| Financial Market Update |
Markets Calmed Down In Advance of the Fed Announcement. That was a wild two weeks, but thankfully, things have settled down. The July Consumer Price Index (CPI), a key measure of inflation, came in as expected at 2.9%, down from last month. Since it matched expectations, interest rates remained stable. Interestingly, housing starts hit their lowest point in four years, signaling that builders are cautious about the economy. This means resale inventory is more crucial than ever, and a slowdown in construction could drive resale prices higher. This week, the Federal Open Market Committee wraps up on Wednesday, and we’ll learn what the Fed decides on interest rates. The market is anticipating a 0.25% to 0.5% decrease, but if your clients are hoping for mortgage rates to drop, that expectation is already priced in. In the coming months, higher unemployment will likely be the key factor driving rates lower. The last significant dip in rates lasted only two days, so we’re advising clients to lock in gains as soon as possible to avoid volatility. We’ll now be adding the MORTGAGE NEWS DAILY RATE INDEX in this section so you can keep a close eye on the market Check out todays MND Daily Rate Index |
Time to Plan for the Fall Housing Market
Now is a great time to be in the market to buy a home. Last week alone, there was a 17% increase in new buyer applications, showing that many are taking advantage of the current conditions.
According to HousingWire, the number of homes for sale continues to rise, now 41% higher than at this time last year. Additionally, over 39% of homes listed have had a price reduction, offering even more opportunities for buyers.
Mortgage News Daily reports that interest rates are more than 0.75% lower than they were last year, giving you greater negotiating power in this favorable market.
Whether you’re looking for your first home, your next home, or your dream home, we’re here to help you make the best possible deal. Let’s connect and explore the opportunities available to you.
Happy House Hunting!
