Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Aug. 27, 2024

What Mortgage Rate Are You Waiting For?

You won’t find anyone who’s going to argue that mortgage rates have had a big impact on housing affordability over the past couple of years. But there is hope on the horizon. Rates have actually started to come down. And, recently they hit the lowest point we’ve seen in 2024, according to Freddie Mac (see graph below):

And if you’re thinking about buying a home, that may leave you wondering: how much lower are they going to go? Here’s some information that can help you know what to expect.

Expert Projections for Mortgage Rates

Experts say the overall downward trend should continue as long as inflation and the economy keeps cooling. But as new reports come out on those key indicators, there’s going to be some volatility here and there.

What you need to remember is it’s not wise to let those blips distract you from the larger trend. Rates are still down roughly a full percentage point from the recent peak compared to May.

And the general consensus is that rates in the low 6s are possible in the months ahead, it just depends on what happens with the economy and what the Federal Reserve decides to do moving forward.

Most experts are already starting to revise their 2024 mortgage rate forecasts to be more optimistic that lower rates are ahead. For example, Realtor.com says:

“Mortgage rates have been revised slightly lower as signals from the economy suggest that it will be appropriate for the Fed to begin to cut its Federal Funds rate in 2024. Our yearly mortgage rate average forecast is down to 6.7%, and we revised our year-end forecast to 6.3% from 6.5%.”

Know Your Number for Mortgage Rates

So, what does this mean for you and your plans to move? If you’ve been holding out and waiting for rates to come down, know that it’s already happening. You just have to decide, based on the expert projections and your own budget, when you’ll be willing to jump back in. As Sam Khater, Chief Economist at Freddie Mac, says:

“The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move.”

As a next step, ask yourself this: what number do I want to see rates hit before I’m ready to move?

Maybe it’s 6.25%. Maybe it’s 6.0%. Or maybe it’s once they hit 5.99%. The exact percentage where you feel comfortable kicking off your search again is personal. Once you have that number in mind, you don’t need to follow rates yourself and wait for it to become a reality.

Instead, connect with a us and we'll help you stay up to date on what’s happening and have a conversation about when to make your move. And once rates hit your target, they’ll be the first to let you know.

Bottom Line

If you’ve put your moving plans on hold because of higher mortgage rates, think about the number you want to see rates hit that would make you re-enter the market.

Once you have that number in mind, connect with me so you have someone on your side to let you know when we get there.

Posted in Market Updates

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Aug. 12, 2024

Mortgage Rates Down a Full Percent from Recent High?

Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. And if you’re someone who’s looking to make a move, you’ve probably been waiting eagerly for rates to come down for that very reason. Well, if the past few weeks are any indication, you may be getting your wish.

Mortgage Rates Trend Down in Recent Weeks

There’s big news for mortgage rates. After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February. To help show the downward trend, check out the graph below:

Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see a 3% mortgage rate again, you’re waiting for something experts agree won’t happen. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“The hopes for lower interest rates need the reality check that 'lower' doesn't mean we're going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”

And with the decrease in recent weeks, you’ve got a big opportunity in front of you right now. It may be enough for you to want to jump back in.

The Relationship Between Rates and Demand

If you wait for mortgage rates to drop further, you might find yourself dealing with more competition as other buyers re-ignite their home searches too.

In the housing market, there’s generally a relationship between mortgage rates and buyer demand. Typically, the higher rates are, the lower buyer demand is. But when rates start to come down, things change. Buyers who were on the fence over higher rates will resume their searches. Here’s what that means for you. As a recent article from Bankrate says:

“If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”

Bottom Line

If you’ve been waiting to make your move, the recent downward trend in mortgage rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too.

If you're ready and able to start the process, reach out and let’s get started.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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July 29, 2024

Curious About Local Real Estate?

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Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

Get Local Market Reports Sent Directly to You

You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

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July 29, 2024

Homebuyer’s Monthly Payment Drops Lowest Level in 4 Months

Monthly housing payments are falling as mortgage rates decline, but many house hunters remain on the sidelines, with pending sales posting their biggest drop in nearly nine months. That’s because sale prices are still near record highs; additionally, some would-be buyers are wary of political and economic instability.

The typical U.S. homebuyer’s monthly housing payment was $2,671 during the four weeks ending July 21, the lowest level in four months and down $166 from the record high set at the end of April. Housing payments are falling because mortgage rates are falling: The weekly average mortgage rate has declined to 6.77%, its lowest level since March, as inflation cools.

Buyers also have more homes to choose from: New listings are up 6.1% year over year, and more listings are growing stale, giving house hunters the opportunity to negotiate. But even though housing payments are declining and inventory is improving, homebuyers remain hesitant. Pending home sales are down 5.7% year over year, the biggest decline in nearly nine months, and mortgage-purchase applications are down 15% (purchase applications are down 4% week over week).

Many would-be buyers are still waiting on the sidelines largely because even though mortgage rates are coming down a bit, home-sale prices are just shy of the record high hit in early July. Additionally, Redfin agents say some house hunters are waiting until after the upcoming presidential election to buy because they don’t want to make a large purchase in the midst of political and economic uncertainty.

“I’m working with several buyers who are waiting for the election before they make a move,” said Matthew Purdy, a DHC-Real Estate agent in Southern California. “Some of them say they’ll only buy a home if their candidate wins. Others are waiting because they feel the economy and housing market are shaky, and hope it will improve after the election. I am working with a few foreign buyers who are wary about investing any more money in U.S. real estate before they see who takes office.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity
	Value (if applicable)	Recent change	Year-over-year change	Source
Daily average 30-year fixed mortgage rate	6.9% (July 24)	Near lowest level since February; down from 7.14% 3 weeks earlier	Unchanged from 6.9%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	6.77% (week ending July 18)	Down from 6.89% a week earlier	Essentially unchanged from 6.78%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Decreased 4% from a week earlier (as of week ending July 19)	Down 15%	Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted)		Essentially unchanged from a month earlier (as of week ending July 21)	Down 16%	Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Touring activity		Up 19% from the start of the year (as of July 22)	At this time last year, it was up 15% from the start of 2023	ShowingTime, a home touring technology company
Google searches for “home for sale”		Up 12% from a month earlier (as of July 22)	Down 15%	Google Trends

Key housing-market data

U.S. highlights: Four weeks ending July 21, 2024 Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.
	Four weeks ending July 21, 2024	Year-over-year change	Notes
Median sale price	$395,500	4.4%	$1,000 below all-time high set during the 4 weeks ending July 7
Median asking price	$401,250	4.9%
Median monthly mortgage payment	$2,671 at a 6.77% mortgage rate	4.6%	Lowest level since March; $166 below all-time high set during the 4 weeks ending April 28
Pending sales	81,224	-5.7%	Biggest decline in nearly 9 months
New listings	92,972	6.1%
Active listings	985,303	18.7%	Smallest increase in 3 months
Months of supply	3.6	+0.7 pts.	4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions.
Share of homes off market in two weeks	38.3%	Down from 44%
Median days on market	33	+5 days
Share of homes sold above list price	31.2%	Down from 36%
Share of homes with a price drop	6.7%	+1.8 pts.	Highest level on record
Average sale-to-list price ratio	99.5%	-0.5 pts.

Metro-level highlights: Four weeks ending July 21, 2024 Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.
	Metros with biggest year-over-year increases	Metros with biggest year-over-year decreases	Notes
Median sale price	Detroit (15.4%) Providence, RI (14.3%) New Brunswick, NJ (13.2%) Newark, NJ (13%) Milwaukee (12.4%)	Austin, TX (-3.6%) Dallas (-1.2%)	Declined in 2 metros
Pending sales	Newark, NJ (7.1%) San Jose, CA (4%) Boston (3.1%) Cincinnati, OH (2.3%) San Francisco (1.7%) Los Angeles (1.4%) Columbus, OH (0.5%)	Houston (-28%) Minneapolis (-16.1%) West Palm Beach, FL (-15.7%) Virginia Beach, VA (-14.3%) Atlanta (-13.6%)	Increased in 7 metros
New listings	San Jose, CA (25.8%) Las Vegas (20.6%) Miami (17.1%) Phoenix (16.2%) Jacksonville, FL (16.1%)	Atlanta (-14.2%) Houston (-10.5%) Detroit (-4%) Chicago (-3.1%) Warren, MI (-2.5%)	Declined in 8 metros