The Latest in Real Estate and Mortgage Rates: How Low Will Mortgage Rates Go?

Welcome to another week of the Educated Home Buyer Live! Jeb and Josh are back to provide you with the latest updates on the economy, mortgage rates, and real estate trends. In this episode, they discuss mortgage rates hitting four-month lows, the impact on homebuyer demand, and insights into housing inventory. Whether you're buying your first home or looking to refinance, this guide will break down everything you need to know.  How Low Will Mortgage Rates Go?

Mortgage Rates Hit Four-Month Lows

One of the biggest topics covered in this episode is the significant drop in mortgage rates to a four-month low. Lower rates have sparked increased demand, with more buyers submitting purchase applications and homeowners looking into refinancing opportunities.

Why Do Lower Mortgage Rates Matter?

• Increased Affordability: Lower rates can reduce your monthly mortgage payment.
• Refinancing Opportunities: If your current rate is higher, refinancing could save you money.
• Boosted Buyer Demand: As mortgage rates drop, more potential buyers enter the market, leading to increased competition for homes.

Current Housing Inventory Levels

Jeb and Josh provided a snapshot of the national housing inventory:

• Total Inventory: Approximately 639,000 homes are on the market.
• Weekly Change: A slight decline of around 1,000 homes.
• Year-Over-Year: Inventory is up 28.3% compared to last year.
• Historical Context: In 2015, inventory was much higher at 962,000 homes.

Local Market Insights

In Orange County, inventory increased by 3.58%, reaching 3,239 properties. However, Huntington Beach saw a small decrease of 1.38%, with 217 homes on the market.

Markets with Higher Inventory Compared to 2019

Jeb shared data highlighting markets with more inventory now than in 2019, including:

• Dallas
• Denver
• Jacksonville
• Nashville
• Phoenix

Home Prices and Market Trends

Median Pending Home Sale Price: $389,900, which is 2.6% higher than last year.
Price Cuts: 33.7% of homes experienced price cuts, a trend expected to rise through the fall.

Economic Factors Impacting the Market

The episode also touched on broader economic factors such as employment data, GDP projections, and the impact of tariffs on the economy. These elements influence mortgage rates and housing market stability.

How Buyers and Sellers Can Navigate the Current Market

Tips for Buyers

• Get Pre-Approved: With increased competition, a pre-approval can help you move quickly.
• Understand Your Budget: Use current mortgage rates to calculate what you can afford.
• Act Quickly: With inventory still tight, well-priced homes move fast.
• Work with a Realtor: A professional can help you spot opportunities and negotiate better deals.

Tips for Sellers

• Price Competitively: Avoid needing price cuts by starting with a realistic listing price.
• Highlight Home Strengths: With more competition, staging and presentation are critical.
• Be Prepared to Negotiate: Buyers might expect some concessions as inventory rises.
• Enhance Curb Appeal: Small improvements can make a big difference in attracting potential buyers.

Key Takeaways

1. Mortgage Rates Are Lower: Now might be a good time to refinance or buy.
2. Inventory is Growing: More choices for buyers, but competition remains.
3. Be Prepared for Price Cuts: Especially if buying in the latter part of the year.
4. Stay Informed: Economic data can shift market dynamics quickly.
5. Plan Ahead: Whether buying or selling, having a strategy will help you navigate the market more effectively.

Call to Action

For more insights, tune into the full episode on the Educated Home Buyer Podcast. Don't miss out on expert advice—subscribe and stay ahead of the market trends!

Looking for personalized advice? Reach out to Jeb and Josh for guidance tailored to your home buying journey. Whether you're refinancing or buying, they're here to help you make informed decisions.

For real-time updates on mortgage rates, visit Rate Watch and stay ahead of market changes.