Inflation (CPI) continued to ease in July, and average 30-yr mortgage rates approached 6.5%. That’s already spurring a renaissance in refinancings (for people who bought in the last few years); can a recovery in homebuying activity be far behind? There’s a lot to talk about!
Much lower mortgage rates
Nine months ago, average 30-yr mortgage rates peaked at 8%. Four months ago, mortgage rates were at 7.5%. Last month, they were at 7.0%. Today, they’re close to 6.5%. This big drop is already driving a resurgence in refinancings. Further moves lower in mortgage rates (as the Fed begins cutting) should boost buyer activity as well. [Source: Mortgage News Daily]
CPI moves lower
More progress on inflation! July headline CPI eased to 2.9% YoY (from 3.0% in June), and core CPI dropped to 3.2% YoY (from 3.3%). Many major items in the July CPI (fuel prices, new/used car prices, airline fares etc.) were actually flat or declined compared to June. Bottom line: nothing to stop the Fed from cutting rates in September. [Source: Bureau of Labor Statistics]
Let’s talk homes
The Fed about to cut rates, mortgage rates falling, and inventory rising – there’s a lot to talk about! If you’ve been putting off a move because of high interest rates, let’s talk. If you bought a home in the last two years, and have a mortgage rate over 7%, let’s talk. If you’re happy where you are but would like a current view on the value of your home, let’s talk.
Local Market Trends
As of Friday, August 16, 2024
| Area | Median Price | Active Listings | New Listings – 5 days | Median Days on Market |
|---|---|---|---|---|
| Scottsdale, AZ |
$975,000
-0.2%
|
1679
0.1%
|
93 |
69
0.1%
|
| Paradise Valley, AZ |
$5,000,000
0%
|
132
-0.2%
|
5 |
108
0.1%
|
| Gilbert, AZ |
$659,000
0%
|
581
0.1%
|
53 |
43
0%
|
| Phoenix, AZ |
$485,000
-0.1%
|
2940
-0.1%
|
221 |
49
0%
|
/
) from Jul. to Aug. 2024.
