Some change comes down for the better
You feel it move
Then some come around like the weather
You take that in too
But like some change in your pocket
Sometimes it seems to be too little too late.
Some Change. WOWT Six News said, “This week mortgage rates hit 5.23%. That rate was less than 3% this time last year, according to Freddie Mac.” If the FED raises interest rates on June 14, mortgage rates could charge above 6%.
Increased mortgage rates are affecting the housing market by pushing out some homebuyers and reducing the demand. This shift is leading to more inventory and longer listing times before houses sell.
Realty Biz News said, “There are signs of a softer market emerging. Recent research by Redfin shows there are fewer people searching for “homes for sale” on Google than in previous weeks, while home viewing activity is down slightly and mortgage purchase applications are down 14% compared to a year earlier. And, even though it’s not that common, some sellers have reportedly been forced to drop their asking prices to sell their homes.”
The latest news shows home inventories are improving slightly. According to data from realtor.com, active inventory last month rose by 8% compared to a year ago, the first time it has done so by that much in almost three years. That suggests homeowners who’ve been thinking about selling are now looking to do so before any slowdown in the market.
Aspiring buyers are expressing greater concerns over prices. Fannie Mae’s home purchase sentiment index showed that 79% of respondents reported that it’s a bad time to buy a home, a new survey high. Affordability is the main reason for their concern, the survey found. Mortgage rates and home prices have climbed, pushing on buyers’ budgets.
“The sudden surge in mortgage rates led to a sudden and significant cool down in the housing market in May,” said Chen Zao, the head of Redfin’s economics research team. “However, mortgage rates are now stabilizing and homes remain in short supply, so while we do expect home price growth rates to decline, we don’t expect prices to fall much at a national level. For homebuyers trying to determine the best timing this year, the main benefit of waiting is that there may be less competition as supply starts to build up.”
Everyone seemed complacent about the economy until the latest CPI news shocked us with a rise to 8.6%. The market fell, mortgage rates rose, talk of transitory inflation fell like a pricked balloon, gasoline prices rose to record highs, and supplies of food plummeted. If the house you are looking to buy fits all your parameters and your budget, make the move. But if you are reaching and your home purchase will put you at the end of the limb where birds won’t go, then I suspect you will be better off waiting for Some Change.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Instead, we offer the simple truth about your home and how we can help you sell it fast.
Give us a ring. We would love to help you understand the process and answer all of your questions. You can reach us at 402 999.0577.