I hope you're having a wonderful week and enjoying the excitement of the FIFA World Cup! Congratulations to Team USA on their recent victory. I hope you're celebrating, staying cheerful, and enjoying the beautiful spirit of the game.

Now, let's take a quick look at what happened in the economy and housing market this week.

Fed Holds Rates Steady

The Federal Reserve voted to keep interest rates unchanged. This was the first meeting led by new Fed Chairman Kevin Warsh. While rates remained steady, many Fed members continue to express concern about inflation and appear willing to keep rates higher if necessary.

The good news is that inflation pressures may begin to ease if the reported peace agreement between the U.S. and Iran holds and energy prices continue to decline.

Oil Prices and Mortgage Rates

Oil prices surged during the recent conflict but have started to stabilize as tensions ease. Lower energy prices could help bring inflation down in the coming months.

Mortgage rates remain around 6.5%, still higher than before the conflict, but improving inflation could create an opportunity for rates to move lower over time.

Housing Demand Remains Strong

Despite higher mortgage rates, buyers are still active.

Pending home sales jumped 3.8% in May, marking the fourth consecutive monthly increase and reaching the highest level since November 2025.

According to NAR Chief Economist Lawrence Yun, many buyers are adapting to mortgage rates above 6% and moving forward with their homeownership plans instead of waiting.

New Construction Slows

Housing starts fell sharply in May, particularly in the multifamily sector. While this data can be volatile month-to-month, it highlights the challenges builders face, including higher costs and softer demand in some regions.

Less new construction could help support home values by limiting future housing supply.

My Take

This week's report shows a housing market that continues to demonstrate resilience. Buyers are adjusting to today's interest rate environment, pending sales are improving, and inflation may be heading in the right direction if energy prices continue to cool.

While uncertainty remains, the overall outlook appears more positive than it did just a few weeks ago.

As always, every local market is different. If you're thinking about buying, selling, investing, or simply want to understand what these trends mean for your neighborhood, I'd be happy to help.

Thank you for your continued trust, support, and referrals. They are sincerely appreciated and remain the foundation of my business.

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