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With recent economic reports showing some promising signs that inflation could be cooling in a more sustainable fashion for the rest of the year, mortgage rates may moderate in coming months as the daily fluctuations in yields continue. Meanwhile, even though the Federal Reserve decided to hold rates steady in their latest meeting, the central bank is still expected to cut rates later this year but at a more moderate pace than previously anticipated. As such, home sales are projected to improve in the second half of the year, but the growth rate will be slower than what was projected earlier this year.
Federal Reserve takes its time and holds rates steady: The Federal Reserve kept its policy rate target range steady at 5.25% to 5.50% after its June meeting, as the central bank continued to wait for more evidence to suggest that inflation is moving sustainably down. While most participants at the meeting continued to project some reduction in the fed funds rate later this year, the outlook for rate cuts released in the latest Fed’s meeting was revised to just one in 2024. No participants at the meeting expected the fed funds rate to be raised before the end of the year and they projected a cut of 100 basis points in 2025. Fed chair Jerome Powell acknowledged that the restrictive monetary policy’s stance that the central bank takes is slowing inflation, but the Federal Reserve does not have the confidence to cut rates yet.
Inflation eases more than expected in May: Inflation came in softer than expected in May as consumer price increases cooled during the month, with the May headline Consumer Price Index (CPI) remaining flat month-over-month and registering an increase of 3.3% year-over-year. Both measures came in lower than expected and the monthly increase was the lowest reading since July 2022. Falling energy prices and the modest increase in food prices both contributed to the slower-than-expected growth rate in the headline CPI. The Core CPI – inflation excluding food and energy – also surprised on the downside with prices in May climbing 0.2% month-over-month, the lowest level since June 2023. The latest inflation data is encouraging and suggests that the underlying price trend is indeed slowing. The Fed, however, will need to see at least two or three more reports like this one to feel confident enough to start cutting rates.
Homeowner equity rises nearly double digits from a year ago: Homeowner equity jumped again on an annual basis in Q1 2024 as home prices continued to rise in the past 12 months, according to the latest CoreLogic Homeowner Equity Insights report. Homeowners with mortgages in the U.S. have seen an aggregated increase of $1.5 trillion in equity since Q1 2023, a jump of 9.6% year-over-year. Mortgaged residential properties with negative equity declined 2.1% from Q4 2023 and 16.1% from Q1 2023. Roughly 1.8%, or one million, of all mortgaged properties were underwater, which was significantly below the peak of 26% observed in Q4 2009. On average, U.S. homeowners with mortgages gained $28,000 in equity last quarter compared to a year ago. California had the highest equity gain of all states in Q1 2024, with an average homeowner equity increase of $64,000 year-over-year in the latest quarter. The Golden State had a share of homes with negative equity at 0.7% in Q1 2024 and was the state with the smallest share among all states reported by CoreLogic.
If you have any questions or would like personalized advice regarding the current market conditions, please feel free to reach out. Your success in real estate is my top priority.
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Looking To Move Out Of State?
Save Thousands for Dollars With Our
Relocation Program
As a top agent with the #1 brokerage in North America, I have relationships with some of the top agents all over the country. I have recently helped some clients move to Tennessee, Arizona, Nevada, Montana, Texas, Florida, and other states with the help of my KW Relocation network of local experts to help them find their next dream home. My network of agents saved them thousands of dollars and reduced the time and hassle of finding a new home in another state.
If you or someone you know is looking to relocate to a new city or state, contact me to tap into the power of my network of experienced agents throughout North America.
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Looking To Sell A Property That Needs Some Work?
Save The Time & Hassle With Our Listing Concierge!
Does your property need some TLC or would having some improvements help you fetch top dollar? With our new listing concierge service we will coordinate getting your home all fixed up and ready to sell. We will manage the entire process of getting your home ready and all decked out with the latest trends, designs and materials. Our contractors are all licensed, bonded, and insured and do excellent work. Best of all, there is no money due up front. This saves you the time and expense of interviewing contractors, managing the work, and all the headache that goes along with fixing up a property. This enables our clients to position their property as "move in ready" to capture maximum buyer interest.
When we renovate homes, our clients receive on average a 150% return on investment!
We have negotiated great terms with our contractors and they don't get paid until the work is done and the home is sold.
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1168 E 10th St #224B
Long Beach 90813
2 Bed | 2 Bath | 698 SF | $399,900
Great opportunity to own this nicely updated 2 bedroom, 2 bath, top floor corner condo with views of Signal Hill. Just a short drive to downtown Long Beach and to the beach!
OPEN HOUSE SUNDAY (6/23)
1:00 - 4:00 pm
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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 2 bedroom 2 bath 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, nightlife, pubs, bakeries, and more.
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525 E Seaside Way #1508
Long Beach 90802
2 Bed | 2 Bath | 1030 SF | $790,000
Enjoy breathtaking ocean views from the living room, bedrooms and the patio in this modern luxury 2 bed, 2 bath highrise condo. Short distance to the beach, harbor, Shoreline Village, Terrace Theater, restaurants, nightlife, and so much more!
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3022 Bostonian Dr.
Rossmoor 90720
4 Bed | 3 Bath | 2,612 SF | $1,700,000
Welcome Home - Updated Kempton model home featuring 4 bed, 3 baths in Rossmoor. Located within a short distance to parks and shopping. Just a short drive to the Seal Beach pier. Great schools in the award winning Los Alamitos school district.
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6544 Cerritos Ave.
Long Beach 90805
2 Bed | 1 Bath | 1,198 SF | $670,000
Welcome to 6544 Cerritos Ave, a charming slice of Spanish-inspired architecture nestled in the heart of North Long Beach. This classic 2-bedroom, 1-bathroom home boasts timeless elegance coupled with modern upgrades, offering comfort and style.
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700 E Ocean Blvd #607
Long Beach 90802
1 Bed | 1.5 Bath | 880 SF | $625,000
Amazing ocean views in this beautifully remodeled open floor plan condo at the iconic International Tower! This beautifully updated modern high-rise condo features hardwood flooring, fresh interior paint, scraped ceilings, and is light and bright with expansive ocean views.
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1985 San Francisco Ave.
Long Beach 90806
3 Bed | 2 Bath | 1,509 SF | $1,020,000
This historic gem awaits you in the charming Wrigley neighborhood of Long Beach! This gorgeous Spanish home, built in 1928, is full of charming curb appeal with its gated courtyard, porte cochere, red-tiled roof and front steps leading to the turret entry!
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16136 Cornuta Ave. #117
Bellflower 90706
3 Bed | 2.5 Bath | 1336 SF | $590,000
Beautifully remodeled townhome with newly updated kitchen, baths, flooring, lighting, etc. Private 2 car attached garage.
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14715 Bellflower Blvd.
Bellflower 90706
2 Bed | 1 Bath | 805 SF | $655,000
Welcome to your ideal starter home located in the heart of Bellflower! With its proximity to local amenities and welcoming neighborhood, this home is a must-see on your home-buying journey.
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8230 Santa InezBuena Park 90602
4 Bed | 2 Bath | 1,194 SF | $625,000
Beautifully remodeled end unit townhouse in Buena Park! 4 bedrooms, 2 baths with open floor plan, modern kitchen, and private backyard.
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3825 Linden Ave.
Long Beach 90807
3 Bed | 2 Bath | 2,142 SF | $1,350,000
Charming 1933 Spanish Stucco with many original features. This single story home is situated on one of the prettiest streets, and just a short distance to both Atlantic Avenue and Long Beach Blvd.
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2512 W Beachy Pl
Anaheim 92804
3 Bed | 2 Bath | 1,695 SF | $875,000
Embrace the charm of this lovingly maintained single-story home, cherished by the same family for over 50 years. Nestled on an expansive 10,948 sq ft lot, this property beckons with endless possibilities – from adding an ADU, a pool, more living space, or just simply reveling in the serene, park-like ambiance.
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2174 Stanbridge Ave
Long Beach 90815
3 Bed | 2 Bath | 1,489 SF | $905,000
Nestled in coveted Los Altos... known for being pet & people friendly with awesome schools, parks, walkability & more! This immaculate & inviting 3 bedroom/2 bath home with its upgraded kitchen, baths, living room as well as spacious family room will go fast!
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807 Delaware St
Huntington Beach 92648
4 Bed | 5 Bath | 3,237 SF | $2,605,000
Tesoro Builders has created another extraordinary opportunity to own a brand new, custom designed single-family home in the heart of highly coveted downtown Huntington Beach. The epitome luxury living offers an exceptional beach lifestyle.
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