National Home Prices Bottomed Out
Terry Roberts
USMC VETERAN | Mortgage Broker | 10,000+ Clients Personally Served | 97% Customer Satisfaction | $600 MILLION+ in Funded Mortgages | NMLS 397987
According to Selma Hepp who is the Chief Economist at CoreLogic (a real estate data juggernaut), national home prices have bottomed out.
Active listings are up.?Home sales are down.?Fewer newly listed homes are hitting the market.?Home prices are up and it’s taking longer to sell a home.??
What will happen next?
While it would be impossible for fact checkers to begin correcting housing market forecasts, it’s safe to revert back to simple economics of supply and demand.
The Fed is trying to control the demand by increasing the cost of borrowing money (interest rates).
With 8 consecutive interest rate hikes by the Federal Reserve, it appears that the intended effect is upon us.?Inflation is beginning to cool, people are borrowing less due to higher interest rates, and the real estate industry is certainly feeling it.
Given the recent inflation report (published yesterday April 12th) it appears there may be a light at the end of the rate hike tunnel.?Industry experts suspect that if the inflation rate came back under 5.7%, then it would be realistic to anticipate the Federal Funds Rate to hold steady, rather than have another hike.
As a result, the market has responded and mortgage rates appear to be following more in line with the 10 Year US Treasury Yield once again (rates are getting better).
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What does this mean for you if you are a real estate agent??
If rates continue to creep lower, buying sooner than later may be more advantageous for your clients as housing inventory remains low.?Offer our 2-1 buydown option if the seller is covering the buyer’s closing costs.?Here’s more about how that works: What is a 2/1 Buydown?
What does this mean for you if you are in the market to buy a home?
Since there are significantly fewer homes available for sale than there has been in recent years and interest rates appear to be going down, the demand vs. supply curve of homes will grow, causing home prices to go UP!?If you’re preapproved and ready to make an offer, holding off to buy a home for another few months may cost you more as a result; even with a lower interest rate.
Still searching for a trusted lender??Here’s guidance to do it: https://www.thehomeloanhub.com/post/how-to-find-a-trusted-lender.
If you haven’t gotten your preapproval letter, be sure to get a copy prior to making an offer on a home.?This could prevent you from losing thousands of dollars in earnest money, as well as appraisal and inspection fees.
If you don’t have a real estate agent and would like a free referral for a reputable and local agent, contact me and I will be happy to assist.
Like what you’re reading??Check out my other articles at www.TheHomeLoanHub.com
Terry Roberts?is a U.S. Marine Corps Veteran and specializes in residential mortgages, including new construction, conventional, FHA, and VA home loans. He has helped more than 10,000 clients start the home buying process across America.
This article was originally published at?The Home Loan Hub.