Good Monday Morning!

We now find ourselves in a very strange Real Estate market. The inventory of homes for sale remains extremely low, both nationally and here in the Eugene and Springfield area. Typically, low inventory brings on a strong sellers market, but not right now. Even with few homes to choose from, buyers are slow to pull the trigger on home purchases. Mortgage interest rates remain elevated, but they are lower than the level we had at the same time last year. So, why do we have a more sluggish home sales market? The answer most likely comes from a lack of consumer confidence. High inflation rates over a long period of time have eaten away at savings and left most people with less money in their pockets at the end of the month. We just have not seen a great deal of positive news in regards to the economy, and the combination of the two is creating concern for would-be home buyers. There is a huge pent-up demand for housing, and most likely, any positive economic events will turn our current sluggish housing market into a much more active one. The following article is a recent article from "NAR" that describes our present national housing market.

Mortgage rates have been holding mostly steady this month, after dropping nearly a half percent from their peak earlier this year, Freddie Mac reports. “Despite these lower rates, buyers continue to pause, as reflected in tumbling new and existing home sales data,” says Sam Khater, Freddie Mac’s chief economist.

The National Association of REALTORS® reported this week that existing-home sales in June fell 5.4% compared to a year earlier. New-home sales also fell, down 7.4% compared to a year ago and the lowest pace since November 2023. 

“Many potential buyers are remaining in a holding pattern due to elevated mortgage rates that averaged near 7% in June,” says Carl Harris, chairman of the National Association of Home Builders. “However, moderating inflation suggests lower interest rates in the months ahead and that should bring more buyers off the sidelines.”

That could help home buyers handle the higher home prices, with existing-home prices surging to an all-time high in June, reading a median of $426,900. At this week’s average 30-year fixed mortgage rate of 6.78%, with a 20% down payment, a household would face a monthly mortgage payment on a median-priced existing home of $2,222, says Jessica Lautz, NAR’s deputy chief economist. Housing affordability and still-high inflation remain pressing issues holding many would-be home buyers back.

Indeed, real estate agents in the Mid-Atlantic region report that affordability was the main reason their clients paused their home search over the past six months, with about half citing high prices, not enough homes in their price range, or high mortgage rates.

“With mortgage rates hovering around 7% and home prices continuing to rise, financing is a growing challenge for buyers, and this is beginning to impact a buyer’s ability to make it across the finish line,” says Lisa Sturtevant, Bright MLS’s chief economist. Bright MLS data shows that a rising percentage of sellers—14%, as of June—had a contract fall through due to the buyer’s inability to secure financing.

Mortgage Rates This Week

Freddie Mac reports the following national averages with mortgage rates for the week ending July 25:

  • · 30-year fixed-rate mortgages: averaged 6.78%, slightly higher than last week’s 6.77% average. A year ago, 30-year rates averaged 6.81%.
  • · 15-year fixed-rate mortgages: averaged 6.07%, rising slightly from last week’s 6.05% average. A year ago, 15-year rates averaged 6.11%.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

5580 Tradition Alley, Eugene, OR 

Price: $465,000    Beds: 3    Baths: 2.0    Sq Ft: 1812

This single level home has been tastefully updated and is located in a quiet West Eugene neighborhood. Features include a newer 3-head ductless heat pump AC/heating system, a spacious living room, large bedrooms & a 2-car garage with built-in storag... View this property >> 

 

AND HERE'S YOUR MONDAY MORNING COFFEE!!