by Justin O’Neill, Flyhomes
We’re back to our regular Market Update routine after last week’s special edition covering the Election and the Fed’s interest rate cut.
This Week’s Theme: Housing is having an Election hangover
Market activity took a brief pause due to the Election, which has impacted this week’s numbers. Expect to see some declines now and a rebound next week.
Before we get started, a heartfelt Happy Veterans Day to all who served.
Now, let’s dive into the current state of 1. MORTGAGE RATES, 2. INVENTORY, 3. DEMAND, and 4. PRICING.
1. MORTGAGE RATES
- Current Rate: 6.97% (down slightly for the week)
- Trend: Mortgage rates are gradually edging lower, a welcome relief as we flirt with the 7% mark.
- Key Data:
- Recent jobless claims were steady.
- CPI (Consumer Price Index) met expectations at 2.6%.
- Insight: Watch jobless claims. If they go up, rates could drop; if they go down, expect rates to climb. It’s not always straightforward, but that’s the general trend.
2. INVENTORY
- Current Level: 722,000 homes (down 2%)
- Trend: We’re in the seasonal decline, with only a couple of weeks left for inventory to build.
- Impact of the Election: New listings were delayed, and many listings were withdrawn, affecting the numbers.
- Looking Ahead: Analysts are optimistic that 2025 might bring inventory levels back to 2019 pre-pandemic numbers.
3. DEMAND
- Positive Sign: Mortgage applications for home purchases rose by 1%—the first increase in seven weeks.
- Sales Pace: Down by about 2%, but still better than the same period in previous years.
- Takeaway: Despite last week’s Election stall, demand remains stronger than expected, showing that buyers are staying active.
4. PRICING
- Current Trend: Median contract prices dropped by 2% this week.
- Comparison: Despite the dip, home prices are still up 4% compared to last year.
- Future Outlook: Price cuts have decreased rather than increased, signaling that prices will quickly rebound from the Election induced dip.
WRAP-UP
That’s it for this week’s update! If you have any questions or want more details, feel free to reach out:
Contact Me: joneill@flyhomes.com
Learn More About Flyhomes: hello@flyhomes.com
Take care, and see you next week!
Sources:
- Altos Research
- HousingWire
- St. Louis Federal Reserve