Hello Friends,
I hope you're enjoying these beautiful summer days and finding a little time to relax, recharge, and enjoy the season. As we move toward the second half of August, I want to share a quick look at what’s happening with mortgage rates, real estate, and the economy.
Mortgage Rates Edge Lower
The good news this week is that mortgage rates moved slightly lower. The average 30-year fixed rate is around 6.67%, while the 15-year fixed rate is near 6.0%.
Rates are still higher than the levels we became accustomed to before 2022, but even small improvements can make a difference for buyers and homeowners considering refinancing.
A More Buyer-Friendly Real Estate Market
The housing market continues to gradually shift in favor of buyers.
Inventory is up about 3% from a year ago, giving buyers more choices. At the same time, asking prices have softened modestly in many markets, and more sellers are making price adjustments.
The simple picture is:
Inventory ↑ | Prices modestly ↓ | Buyer negotiating power ↑
This doesn't mean every market or every property is experiencing the same trend. Well-priced homes in desirable locations can still attract strong interest, but buyers generally have more room to negotiate than they did in recent years.
The Economy & Federal Reserve
The Federal Reserve's target rate remains at 3.50%–3.75%. Inflation is still above the Fed's 2% goal, but recent readings show some signs of cooling.
The labor market remains relatively healthy, with unemployment around 4.1%–4.2%, while economic growth continues at roughly a 2% pace.
The big things I'm watching are inflation, energy prices, Treasury yields, and geopolitical developments. These factors will continue to influence mortgage rates and the housing market as we move toward September.
For buyers, today's market offers something we haven't seen as much in recent years: more choices and greater negotiating power. For sellers, pricing correctly from the beginning is more important than ever.
If you're thinking about buying, selling, refinancing, or simply want to know what your home is worth, I'm always happy to talk through your options.
For more information, local market updates, and tools to help with your real estate decisions, visit my website: amirzee.com
Thank you for your continued trust, support, and referrals. They truly mean a lot to me and are the reason I’m able to continue doing what I love.
And, as always, thank you for taking a few minutes to read my weekly market update. I hope you have a wonderful rest of your summer!
Amir Zee
Associate Broker | Vylla Home
Long Beach & Southern California