12 Aug August 2024 Real Estate and Mortgage Report
There is an increase in the number of listings coming to market lately, which suggests that many homeowners can no longer put off moving. More listings and lower rates could create new opportunities for buyers.
Insights
“The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates. Mortgage rates are 7% now and the best we may be able to hope for over the next year is 5.5 to 6%.
Greg McBride Chief Financial Analyst, Bankrate
“Inventory is finally turning up—up about 15%—and that likely is an early leading indicator that we may finally see more home sales as conditions improve.
Lawrence Yun, Chief Economist, NAR
Rates
Mortgage rates declined to their lowest level since early February. Expectations of a Fed rate cut coupled with signs of cooling inflation bode well for the market, but apprehension in consumer confidence may prevent an immediate uptick as affordability challenges remain top of mind. Despite this, a recent moderation in home price growth and increases in housing inventory are a welcoming sign for potential homebuyers. – Sam Khater, Chief Economist, Freddie Mac
Affordability
While housing affordability is low for potential first-time home buyers, slowing price appreciation and lower mortgage rates could help — so the dream of homeownership isn’t boarded up just yet. – Odeta KushiDeputy Chief Economist, First American
Prices
Expert forecasts lean towards a moderation in home price growth over the next five years. This translates to a slower and more sustainable pace of appreciation compared to the breakneck speed witnessed in recent years, rather than a freefall in prices. – Norada Real Estate Investments
Economics
The unemployment rate rose by 0.2 percentage point to 4.3 percent in July, and the number of unemployed people increased by 352,000 to 7.2 million. These measures are higher than a year earlier, when the jobless rate was 3.5 percent, and the number of unemployed people was 5.9 million. – U.S. Bureau of Labor Statistics
More Charts…
Do you love housing data? Whether you are a real estate expert or just learning about the market, this is the housing data to know. Enjoy 50+ charts illustrating the key metrics for the month.