As Labor Day approaches, the U.S. housing market has faced a challenging summer, with frustrated expectations for buyers, sellers, and builders. The market is deadlocked, with increasing inventory, low sales, and hesitant movements from all parties involved. Despite some silver linings on the horizon, the housing market remains in a state of stagnation, according to the July housing market trends report from Realtor.com®.
The fix-and-flip market is experiencing a slowdown, affecting both flippers and average home sellers. Data from John Burns Research and Consulting and Kiavi show a decline in sales, which can be attributed to economic uncertainty, higher mortgage rates, and increased material expenses. Flippers in specific regions like Florida and California face challenges due to high costs and competition, affecting their profitability and ability to secure insurance.
Mortgage rates have remained elevated since 2023 and home prices are at record highs, locking out many millennials and Gen Z buyers from the housing market. A significant portion of younger homebuyers are betting on future rate drops by taking on adjustable-rate mortgages or planning to refinance, but experts warn this is an unreliable gamble. Although mortgage rates peaked at 8% in late 2023, they remain relatively elevated at about 6.5%.
Since the last jobs report showed an average of just 35,000 jobs being created for the last three months, it won't take much to make the Federal Reserve feel better about the labor market. Even if job growth only picks up toward 75,000 per month, they might be perfectly satisfied with that jobs data. In two weeks we will have the final jobs week reports for the Fed to mull over before their September meeting.
Sales of previously occupied U.S. homes rose in July as homebuyers were encouraged by a modest pullback in mortgage rates, slowing home price growth and the most properties on the market in over five years. Existing home sales rose 2% last month from June to a seasonally adjusted annual rate of 4.01 million units, the National Association of Realtors said Thursday. Sales edged up 0.8% compared with July last year.
Mortgage rates that rise higher than expected before financing is secured can deal a serious blow to a home's affordability or a client's chances of loan approval. Regardless of where rates head, your role as a real estate agent is to remain calm, informed, and proactive. Here's a practical guide to help you support your clients when mortgage rates shift higher or lower before closing.
The economy grew by 73,000 jobs, according to the Bureau of Labor Statistics. That was less than most economists were forecasting. Worse, the initial estimates for job growth in May and June were revised downward by a total of 258,000.