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Weekly Market Update: Mortgage Rates Continue to Slide as Buyer Demand Shows Signs of Life
As inflation continues to ease, mortgage rates are continuing to slide, creating a more favorable environment for homebuyers. In July, inflation slowed further, fueling optimism that the Federal Reserve might lower interest rates in September. Mortgage rates, meanwhile, fell further and remain below 6.5% for the second consecutive week, which is encouraging potential buyers to re-enter the market.
Inflation Progresses Toward Fed's Target:
For the second month in a row, headline inflation remained below 3% year-over-year, with July showing a slight decrease from June. This trend supports hopes for a rate cut by the Federal Reserve. Core inflation, excluding volatile items, also continued its decline. However, persistent high prices in the service sector, wages, and housing costs have slowed the Fed's progress in controlling inflation. While headline inflation may approach 2.5% by the end of the year, the decline is expected to be gradual.
Mortgage Rates Ease to 15 Month Low :
The latest Freddie Mac data shows that 30-year fixed-rate mortgage rates dropped to 6.46% this week from 6.49% last week. Rates have now remained under 7% for 11 weeks, with the bond market indicating no immediate reversal in this trend. The 10-year Treasury yield remains below 4%, and the yield curve is less inverted, signaling optimism for a potential rate cut in September and a soft landing for the economy. The average rate is now the lowest it's been since mid-May last year, when it was 6.39%.
Buyer Demand Rising Despite Seasonal Slowdown:
California typically experiences a seasonal slowdown in home sales as summer ends, but this year, buyer demand is showing resilience. While mortgage applications have dipped, the decline last week was the smallest this year, and pending sales in July reacted positively to the lower rates. This trend suggests that August could see a strong home sales report, even as the market follows its usual seasonal pattern.
Potential for a Strong Winter Housing Market:
Several factors could lead to an unusually strong housing market in California this winter. The recent job market data points to a weaker economy, which may prompt the Fed to lower rates further. Additionally, the upcoming presidential election might cause a temporary slowdown in the fall, with a potential post-election bounce in the winter. If inflation continues to improve and labor market weakness spreads, California could see a robust housing market during the holiday season.
Feel free to reach out with any questions or for personalized advice. 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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488 E Ocean Blvd #P9
Long Beach 90802
2 Bed | 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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2101 E 2nd St #205
Long Beach 90803
2 Bed | 2 Bath | 1064 SF | $689,900
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.
OPEN HOUSE
Saturday 1pm - 4pm
Sunday 1pm - 4pm
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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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1168 E 10th St #224B
Long Beach 90813
2 Bed | 2 Bath | 698 SF | $410,000
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!
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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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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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