Saturday, June 3, 2023 / by Amy Brown
Over the last 2 days I have seen a decline in mortgage interest rates by .25% bringing more buyers back into the market. This has also increased seller activity with an uptick in inventory.
While we are still very much in a seller's market, certain areas of the country are not so lucky. The further that you head west, the weaker the prices. Seattle is down 12.4% and San Francisco by 11.2%, historically being some of the country's strongest real estate markets. In contrast, the southeast is up 5.4%. Overall, the home price index is up by 4.3%.
Keep your eye on the banking sector as the first quarter shows a 2.5% decline in deposits.
On a side note, the reason for the 3% interest rates during the pandemic were that banks were flush with cash due to the government stimulus but as deposits decrease mortgage rates rise to compensate for that lost interest profit. We are essentially returning to a normalized market.
The labor market remains strong with the unemployment rate resting at 3.7% and May marks the 29th straight month of job growth.
Things are looking up and mortgage rates should remain stable for a bit so put your fears on the back burner and let's get out there and find you the right home!