My last report noted the drop in interest rates to a 1.5 year low, nearing 6% for the 30-yr fixed and inflation falling to its lowest point in 3.5 years. Both positive developments for our housing market.
An unexpectedly strong jobs report has caused interest rates to spike back up (the largest one week increase since April). It's challenging to predict changes in interest rates as there are many macroeconomic and political factors at play, but the consensus opinion is that rates will continue to decline in Q4.
Though sales activity increased in September, the recent drop in interest rates did not precipitate as substantial of a rebound in demad as I and many had anticipated. It's tough to say why; some of my first-time-buyers see too big of a margin in their rent vs. buy analyses, others are hoping for rates to drop further.
And while there's never been data to support buyer hesitancy due to an upcoming election, it may also be true that this is not your typical election year.
I'll leave you with 2 things:
1) September did see a substantial jump in new listings coming on market (by far the highest monthly count of the year) which means buyers have their widest choice of homes since late 2023.
2) As we brush up on the mid-winter holidays, we will start seeing a high number of price reductions as sellers attempt to get into escrow before the slowdown.
In short, it's a great time to be a strong buyer.
