Rates Dipped And Homes Are Sitting On The Market Longer
Good Monday Morning!
Some good news for homebuyers has finally arrived. Mortgage rates took a slight dip last week, and this is welcome news for anyone looking to purchase a home. Homes listed for sale are also beginning to take longer to sell, and price reductions are beginning to become the rule and not the exception. This could possibly indicate a further slowing of home sales, and lower-priced homes could be the new trend. Here in the Eugene and Springfield market area, we are seeing many homes that sold quickly just a few months ago sit and have to reduce the asking price to attract buyer interest. Home showings across the board have slowed significantly over the past few weeks as well. My guess is that this indicates a major market shift is under way. Stay tuned, because anything is possible right now. The following is a national Real Estate market update from "Realtor.com".
Mortgage rates fell this week, with the average rate for a 30-year fixed home loan going from 6.95% last week to 6.89% for the week ending July 11, according to Freddie Mac.
“Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week, and mortgage rates followed suit,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
Despite the drop, the stubbornly high interest rates over the past months have largely left the market in limbo as buyers and sellers hit the pause button.
Yet one key metric shifted for the first time in almost two months: Home prices fell 1.1 % year over year for the week ending July 6, after nine weeks of steady or rising prices.
However, this buyer-friendly good news might be short-lived.
While this decrease might provide some relief to homebuyers, it could be a temporary shift due to Independence Day unless further data can provide persistent evidence of a new trend,” says Realtor.com® economist Jiaya Xu in her latest analysis.
Here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”
Lower mortgage rates predicted
Though the rate has not risen above 7% for six weeks now, that number is still too high for many would-be buyers who are hanging back until rates fall even further.
However, if the economy and job market continue to improve, the Federal Reserve might decide to cut rates, causing mortgage rates to follow this downward path. (While mortgage rates are distinct from Fed rates, they tend to reflect the same patterns.)
“This means buyers may see lower mortgage rates in the second half of 2024 and be more likely to jump back into the market,” Xu explains.
Realtor.com senior economist Ralph McLaughlin agrees that mortgage rates should slowly decline throughout the rest of the year and into 2025.
“The downward trend will certainly be welcome news to homebuyers, who have been stymied by high rates and low inventory,” he says. “Falling mortgage rates should help lower monthly mortgage payments for new borrowers.”
While this decrease might provide some relief to homebuyers, it could be a temporary shift due to Independence Day unless further data can provide persistent evidence of a new trend,” says Realtor.com® economist Jiaya Xu in her latest analysis.
Here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”
Lower mortgage rates predicted
Though the rate has not risen above 7% for six weeks now, that number is still too high for many would-be buyers who are hanging back until rates fall even further.
However, if the economy and job market continue to improve, the Federal Reserve might decide to cut rates, causing mortgage rates to follow this downward path. (While mortgage rates are distinct from Fed rates, they tend to reflect the same patterns.)
“This means buyers may see lower mortgage rates in the second half of 2024 and be more likely to jump back into the market,” Xu explains.
Realtor.com senior economist Ralph McLaughlin agrees that mortgage rates should slowly decline throughout the rest of the year and into 2025.
“The downward trend will certainly be welcome news to homebuyers, who have been stymied by high rates and low inventory,” he says. “Falling mortgage rates should help lower monthly mortgage payments for new borrowers.”
Have An Awesome Week!
Stay Healthy! Stay Safe! Remain Positive! Trust in God!
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