Below is one of several articles you will see in this newsletter pertaining to mortgage rates. When the Federal Reserve dropped the rate by one quarter percent in September, the long-awaited change set off a series of positive effects on our home sales market. Jerome Powell, the Federal Reserve chairman essentially killed our robust housing market that ran from June/2020 to June/2022 by raising rates during the first part of 2022 historically fast. Now, he has dragged his feet this year in dropping rates for the first time in September. Many economists felt it should have been a half point drop and I agree with them. If the Fed follows with more rate drops in the coming months and mortgage rates get in the 6% range, you will see an even more pronounced improvement in our market.
Falling Mortgage Rates Help New Home Sales Rise More Than Expected In August There were 800,000 (SAAR) new single-family home sales nationwide in August. That’s 20.5% above the revised July rate of 664,000. Sales of newly built homes are 15.4% above the August 2024 estimate, according to the U.S. Census Bureau. The median price of new houses sold was $413,500, up 1.9% from a year ago. The seasonally adjusted estimate of new homes for sale at the end of August was 490,000, a supply of 7.4 months at the current sales rate. This is lower than the 9.0 months in July and lower than the 8.2 months in August 2024.
(512) 853-0110 or robert@AustinTxHomeSales.com
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