Housing Market Update: Declining Mortgage Rates and Buyer Hesitation

Anya’s Market Bites:

Monthly housing payments are decreasing as mortgage rates drop, yet many potential buyers remain hesitant due to high sale prices and economic uncertainties.

• Lower Monthly Payments: The typical U.S. homebuyer’s monthly housing payment decreased to $2,671 in the four weeks ending July 21, the lowest in four months, due to mortgage rates falling to 6.77%.

• Increased Inventory: New listings rose 6.1% year over year, providing buyers more options and negotiation opportunities.

• Buyer Hesitation: Despite these favorable conditions, pending home sales dropped 5.7% year over year, and mortgage-purchase applications fell 15%. High sale prices and political/economic instability are key reasons for this hesitance.

• Election Impact: Some buyers are delaying purchases until after the upcoming presidential election, hoping for a more stable economic environment.

Overall, while the market shows signs of improvement, potential buyers are cautious, waiting for more favorable conditions.

(Source: Redfin)

All the best,

Anya Derebenskiy

(949) 942-5183

Oh, by the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and contact information.

DRE# 02209693