How could the summer in housing unfold?
Mortgage rates have cooled from their March 2024 highs. Home inventory is up throughout the country. Home prices appear to have plateaued a bit. The summer housing market should be awesome, right? The team at Realtor.com recently surveyed several experts to get their take on the summer market.
Sam Khater, Freddie Mac’s chief economist, wrote, “Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Fed rate cut. These lower mortgage rates coupled with the gradually improving housing supply bodes well for the housing market.”
Realtor.com data scientist Sabrina Speianu felt that some homebuyers might hold off and wait for rates to cool even further. Speianu stated, “A recent survey revealed that a sizable 40% of potential buyers would find a home purchase feasible if mortgage rates were to drop below 6%.”
Are home prices cooling off in the Sun Belt?
A recent article from Yahoo! Finance took a detailed look at some of the markets that were among the hottest in the country during the pandemic.
According to recent data from global mortgage data and technology provider, Intercontinental Exchange (ICE), San Antonio and Austin in Texas and Tampa, FL have seen the biggest month-over-month price declines in the country. All three metro areas were among the most popular in the country during the pandemic.
Andy Walden, vice president of enterprise research strategy at ICE Mortgage, stated, “The key differentiator we’re seeing in terms of growing inventory levels in Florida and Texas is a rise in sellers’ willingness to list their homes for sale.”
Comparing month-over-month data, San Antonio home prices declined 0.3%, Austin was down 0.25%, and Tampa was down 0.16%. All three markets saw massive home price increases from 2020 to 2022 and have just started to cool down.
When it comes to active listings, all three metro areas have available listings of 10,000 or more. During the pandemic period, they were in the 1,400 to 3,000 range depending on the market conditions.
If you’ve been scared off by high home prices or a lack of options in these three metros, you may want to take another look at the current market.
Where are mortgage rates right now?
According to data from Bloomberg News, the national average rate for a 30-year, fixed-rate mortgage has dipped to 6.87%. This has the national average at a new two-month low.
Experts attributed the dip in rates to bullish sentiment from a cooling jobs market, cooling inflation, and at least one predicted rate cut from the Fed by the end of the year.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
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.
