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Mortgage Rates Rise, New Home Sales Peak, and Inflation
Expectations Hold
With mortgage rates hitting a three-month high, the recent surge has weighed on housing demand, driving mortgage applications to their lowest level since July. This suggests that home sales may stay slower through October and November until rates ease again. However, last month’s new home sales were a bright spot, reaching their highest since May 2023 due to lower rates in September, although the recent climb back to 7% could dampen momentum in the near term. On a positive note, short-term consumer inflation expectations are holding at their lowest levels since early 2021, giving hope for a gradual rate decrease in the coming months.
Inflation Expectations Steady in the Short-Term, Tick Up Over Time
The Federal Reserve Bank of New York’s recent report shows that inflation expectations for the next year held steady at 3.0%, but long-term concerns are creeping up. Inflation expectations rose slightly for three-year and five-year outlooks to 2.7% and 2.9%, respectively. The largest increase was among respondents with a high school education or less, indicating that those who may be more financially vulnerable are feeling the pinch of housing affordability and wage pressures. This growing uncertainty could impact consumer behaviors as we move into 2025.
New Home Sales Surge in September
September data from the U.S. Census Bureau reveals that new single-family home sales jumped to a seasonally adjusted annual rate of 738,000—up 4.1% from August and 6.3% higher than a year ago. Lower rates in September fueled this growth, which brought some much-needed momentum to new home sales. The months of inventory fell slightly to 7.6 months, underscoring a tight supply in the new home market. Still, as mortgage rates have risen since early October, sustaining this momentum could be a challenge in the months ahead.
Mortgage Rates Spike and Mortgage Applications Drop
Mortgage rates climbed to 7% as of late October, reaching a high last seen in early July, and mortgage applications dropped in response. The Mortgage Bankers Association reported a 6.7% weekly decline in purchase applications, while refinance applications dropped 8%. Rising rates may continue to pressure mortgage applications until there’s a clearer outlook on rate cuts.
Rent Prices for Single-Family Homes Remain Steady
In the single-family rental market, prices grew 2.4% in August year-over-year, marking the slowest increase since last fall. Detached home rents rose by 2.3%, while attached rentals edged up 2%. Higher-end rental prices grew faster, with an increase of 2.9% year over year, whereas lower-end prices experienced a slight decline of 0.2%. Of the metropolitan areas surveyed, coastal metros such as Seattle and New York had the greatest increases. Despite the boom in prices in coastal metros, Los Angeles and San Diego rent prices stayed under a 2.0% year over year increase. While overall U.S. annual single-family rent growth remained below 3%, prices were still up nearly 33% compared to the beginning of the pandemic.
If you have any questions about how these trends could affect your home buying or selling decisions, feel free to reach out!
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700 E Ocean Blvd #1706
Long Beach 90802
2 Bed | 2 Bath | 1080 SF | $940,000
Experience luxury coastal living with breathtaking ocean views from every room in this beautifully remodeled high-rise condo at the iconic International Tower. This light-filled unit features an open floor plan, updated kitchen with sleek cabinets, marble countertops, and stainless steel appliances, and a spacious primary suite with a luxurious soaking tub. Enjoy panoramic vistas from the large wrap-around balcony, plus access to top-notch amenities, including a pool, fitness center, and 24-hour security, all just steps from the beach and vibrant local dining.
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223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $825,000
Enjoy modern luxury living in this stunning 2019-built townhome at The Huxton in the East Village Arts District. This inviting home features an open-concept layout perfect for entertaining, with high ceilings, large windows, recessed lighting, and beautiful flooring throughout. The gourmet kitchen boasts quartz countertops, soft close cabinets, and upscale appliances by Bertazzoni and Bosch. Upstairs, two primary suites offer walk-in closets and luxurious bathrooms. Enjoy city views from the spacious rooftop deck – ideal for relaxing or BBQs. Eco-friendly features include owner-owned solar panels and a garage pre-planned for EV charging. Located in a secure, gated complex, you’ll be steps from the waterfront, dining, cafes, and nightlife. VA Approved.
OPEN HOUSE
Saturday (11/2) 1:00 - 4:00
Sunday (11/3) 1:00 - 4:00
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225 W 6th St #515
Long Beach 90802
1 Bed | 1 Bath | 547 SF | $339,000
Charming top-floor end unit condo in the heart of Long Beach, offering privacy and city views. This updated home features an open living area with a private balcony, a stylish kitchen with butcher block countertops, and a bright bedroom with two mirrored closets. Located near top attractions like the Long Beach Convention Center and Shoreline Village, with easy access to dining, shopping, and transportation.
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1187 E 3rd St #111
Long Beach 90802
2 Bed | 2 Bath | 1039 SF | $2,595
Looking for the perfect beachside home? Look no further than this beautiful two-bedroom, two-bathroom condo located in Alamitos Beach! Just six blocks to the beach, this home is perfectly situated for those seeking a coastal lifestyle.
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706 E Bixby Rd
Long Beach 90807
3 Bed | 2 Bath | 1417 SF | $1,075,000
Welcome to this beautiful California Heights home, featuring over $250,000 in recent updates that blend modern luxury with timeless charm. The spacious living room invites you in with an abundance of natural light, gleaming oak wood floors, a cozy fireplace, and elegant recessed lighting. The newly updated custom kitchen is a chef’s dream, boasting top-of-the-line Café and Miele appliances. Great open floor plan with formal dining room that opens to the living room and kitchen. Both bathrooms have been beautifully remodeled with quartz countertops, custom white oak vanities, stylish tile work, modern lighting, and the primary bath features a luxurious soaking tub for ultimate relaxation. Located just 1-2 blocks from award-winning Blue-Ribbon schools (Longfellow Elementary & Hughes Middle School), and within walking distance to the vibrant shopping, restaurants, and cafes in Bixby Knolls.
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488 E Ocean Blvd #P9
Long Beach 90802
1 Bed + Bonus Room | 1.5 Bath | 1447 SF | $799,900
Experience Luxury Living with Breathtaking Panoramic Views in this Rare Two-Story Penthouse! AMAZING VIEWS!! Discover unparalleled luxury in this stunning 18th & 19th-floor penthouse in the prestigious Aqua high-rise building in downtown Long Beach.
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3503 Marber Ave.
Long Beach 90808
3 Bed | 2 Bath | 1553 SF | $1,120,000
Impeccable South of Conant Home on a Beautiful Tree-Lined Street! This charming 3-bedroom, 2-bath home in a highly sought-after neighborhood exudes curb appeal with designer touches throughout.
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2101 E 2nd St #205
Long Beach 90803
2 Bed | 2 Bath | 1064 SF | $679,900
Enjoy the ocean breeze in this beautiful condo located just 2 blocks to the beach and across from Bixby Park. Walking distance to the beach, Retro Row, Broadway Ave, dog park, Farmer’s Market, and all the great local restaurants, cafes, and nightlife.
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6815 E Monlaco Rd
Long Beach 90815
3 Bed | 2 Bath | 1254 SF | $995,000
Welcome Home to Modern Elegance in the Heart of the Plaza Area, Long Beach! Nestled in the highly sought-after Plaza neighborhood, this newly updated 3-bedroom, 2-bathroom residence invites you to experience the perfect blend of contemporary comfort and classic charm. Step inside to discover a thoughtfully designed living space that seamlessly combines style and functionality.
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6713 E Almada St
Long Beach 90815
4 Bed | 3 Bath | 2136 SF | $1,174,900
Welcome to Your Dream Home in Los Altos! This stunning 4-bedroom, 3-bathroom, 2-story home is a rare find in the highly sought-after Los Altos community. Conveniently located near Belmont Shore, this home offers easy freeway access, making commuting a breeze. You'll be close to parks and highly rated schools, perfect for families and outdoor enthusiasts alike.
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6600 Warner Ave #182
Huntington Beach 92647
1 Bed | 1 Bath | 765 SF | $425,900
Highly sought after top floor condo at Villa Warner iin Huntington Beach! This beautiful condo offers plush carpeting, smooth ceilings, recessed lighting, large living room with sunny balcony! Villa Warner is a gated community and offers a large pool, spa, cooking area, weight room, billiards room, Extra storage, close to the Ocean, shopping & restaurants.
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