The real estate market is constantly changing; it can be difficult to track everything going on! We put together this market update so that you can get the basics all in one place. Here’s what’s happening:
Mortgage rates are still high.
Mortgage rates recently hit a high for 2023, at a 6.81% average for 30-year loans, according to Freddie Mac. “This upward trend is being driven by a resilient economy, persistent inflation and a more hawkish tone from the Federal Reserve,” says Sam Khater, Freddie Mac’s chief economist. “These high rates, combined with low inventory, continue to price many potential home buyers out of the market.”
Inventory is very low.
Housing supply has dropped to the lowest level since 1999, according to recent information from the NAR. “Inventory continues to be the biggest obstacle for prospective home buyers,” even more so than affordability, according to Khater. This is most true for middle-income buyers, as they have the lowest inventory in their price range.
Mortgage applications are fluctuating.
Mortgage application numbers have been fluctuating recently, with slight drops some weeks and slight increases other weeks. The most recent data from the Mortgage Bankers Association shows a 0.9% increase for the week ending with July 7. Purchase and refi activity is still below June 2022 levels, which is to be expected given mortgage rates and inventory levels.
The Fed declined to hike rates in June; they may do a final hike in July.
In a positive sign for the real estate industry, the Federal Reserve held their interest rates steady in June. However, experts are predicting a small rate hike at the Fed’s next meeting in July. Importantly, this could be the last rate hike of the year. As we’ve discussed before, mortgage rates tend to follow the Fed’s movements. Our expectation is that any reduction in mortgage rates will be very gradual.
What this means for you:
All of this put together means that we are firmly in a seller’s market. This does not mean that buyers will create a bidding war for any home. With interest rates at highs, the budget for renovations and updates has been cut or is non-existent for many buyers.
If your current home requires repairs or updates, you will need to seriously consider taking on that work to sell on the open market. This will likely eat into your profits, but If you’ve been in your current home a while, you can tap into the record amounts of equity that many homeowners are benefiting from. If you want to sell your house fast in this market, without making any repairs or updates, we’d love to hear from you at MarketPro Homebuyers.
We often get questions like:
Can I sell my house fast if it needs a new roof?
Can I sell my house fast if it needs new appliances?
Can I sell my house fast if extensive plumbing work needs to be done?
Absolutely. At MarketPro, we buy homes with any issues—big or small.
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.