Looming talk of rate cut help stabilizing the real estate market
The US labor market saw the best job growth of the year in June, but outside of the labor market, economic data has deteriorate significantly. Also with the trade war warrants worries, the market are still see a 100% probability of an interest rate cut at the Federal Reserve's next meeting on July 30-31.
Despite federal fund rate remained unchanged after June meeting, we have seen a further drop in the mortgage interest rate. We have seen interest rate as low as 3.75% for 30 year fixed and 3% and below for 15 year fixed. The lowered interest rate has continue to stabilize the real estate market by driving interest sensitive buyers back into the market.
As a result , we saw an 0.9% increase in the year over year medium sale price in June for the entire MLS up slightly from May. With this trend continuing, the market should be relatively steady for the next few months and possibly extending the busy summer season into early fall.
What does it mean for the buyers and sellers on the market?
Buyers should fully take advantage of the interest rate and lock in interest rate at less than 4% for 30 years. With more buyers back on the market it is a great time for homeowners to take advantage of the increased market activities. We are still seeing some multiple offers on well priced and move in ready homes.
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