How did home prices perform in July?
The median home price in the U.S. fell from $445,000 in June 2024 to $439,950 in July 2024 according to recent data.
The downturn in home prices is attributed to a slower summer housing market. Buyers and sellers have been holding off on making a move until market conditions improve.
Realtor.com’s senior economist Ralph McLaughlin said, “As mortgage rates fell in July to their lowest since March on expectations that the Federal Reserve will cut rates as early as September, we suppose some homebuyers may be holding out for lower rates over the next few months.”
The dip in home prices was accompanied by an increase in available homes. The total number of homes for sale was up 36.6% comparing July 2023 to July 2024. When asked about the increase in inventory, McLaughlin stated, “It’s a welcome sign that the housing market is normalizing, and it tells us the market is healing.”
Where did mortgage rates go on the day after the Fed?
The national average rate for a 30-year, fixed-rate mortgage dipped 0.08 to 6.62%* on Thursday.
The bond market continued to rally the day after the Fed announcement. With the continued dip in mortgage rates, the last two days have been the best two day decrease in rates since December 2023.
The next major data point that could influence the market is Friday’s jobs data. The bond market will want to see a soft jobs report to continue the rally. Recent geopolitical headlines have been shrugged off by the market, but it’s a situation that market watchers should keep an eye on.
Is activity in the housing market starting to increase?
A recent report from the National Association of Realtors® showed that the Pending Home Sales Index rose nearly 5% in June as more houses went under contract.
NAR chief economist Lawrence Yun stated, “The rise in housing inventory is beginning to lead to more contract signings. Multiple offers are less intense, and buyers are in a more favorable position.”
NAR economists believe that the market should start to loosen as we head into Q4 2024. Inventory is expected to continue to rise, while prices historically cool off in the fall and winter.
Yun said, “Even more inventory is expected to come onto the housing market in the upcoming months ahead of the normal, seasonal declines in the winter. The Northeast’s small gain in contract signings is due to the ongoing housing shortage situation in that region, leading to stronger home price gains. It is a good time to list.”
* National average rates as of 8/1/2024 are included for educational purposes only and are not advertised rates from Rate.
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.
