Instead of the doom and gloom headlines about the home drought, these ten markets are helping to reverse the trend. And we’re not talking single digit increases either.
Home inventories in these markets have increased between 70-150%. As home inventories increase in these markets, prices should start to pull back. This comes as a ray of hope as home affordability continues to be one of the biggest barriers for homebuyers.
Home prices fall for the first time in a decade
Inflation and rising mortgage rates have sidelined a lot of homebuyers with a wait-and-see outlook. This slowdown has more and more home sellers trimming their listing prices.
For the first time in a decade, the value of a typical home fell 0.1% on a monthly basis. While it might not sound like much, it could be the beginning of a slow and steady decline in home prices. As the economy continues to weigh on consumers, we may see lower home prices in the coming months.
Where did mortgage rates start the week?
Just as mortgage rates seem to be settling down, they notched another high on Monday with the 30-year fixed now at 5.72%. Still about a quarter point shy of our June high of 6%.
The markets seem especially anxious about the upcoming central bank’s annual Jackson Hole economic symposium where Fed Chairman Powell could continue his hawkish tone about raising rates to curb inflation. We, and the markets, will know more after his speech on Friday.
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All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
John Kistner is Guaranteed Rate’s Market Analyst. Market Updates are designed to provide readers with a high-level yet insightful view of how economic news, events and trends affect mortgage rates and the homebuying process.