Nationally, pending sales edged up 0.6% in August according to NAR. This reflects a mix of lower mortgage rates and pent-up demand, trends that will likely appear in our official September numbers. It’s worth a reminder that pending sales are always a leading indicator of future closings. So, changes like this will trickle through to closings. Showings are a leading indicator of future signed purchase agreements. Most recently, showings were up 2.7% compared to the same week last year (based on entire NorthstarMLS coverage area). The increase in showing activity is encouraging.
Mortgage refinance applications have been rising faster than purchase applications, according to Mortgage News Daily. The 30-year fixed rate stands at roughly 6.6% after touching 6.1% in September. That’s down from a high of about 8.0% in late 2023. The slight bump reflected better-than-expected jobs data. With the Federal Reserve pivoting to rate cuts, the path for mortgage rates should be lower but it will be bumpy.
“Housing sentiment has jumped to its highest level in two years,” according to Fannie Mae in a recent MarketWatch report. Not only have rates come down, but aspiring home buyers are also finding more inventory. Depending on factors like price point, school district, and whether new or existing, inventory can vary. But overall, the trend is shifting toward a more balanced marketplace.
Now is the time to work with an expert Realtor® to buy or sell property. Realtors® are the best possible representation during a real estate transaction.
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