Thinking about buying a home? The real estate market is showing some interesting shifts that could affect your decision. Last week, mortgage rates inched up slightly to 6.14%, causing a bit of a stir in the loan application world. It’s like when your favorite coffee shop raises prices by a few cents – not a dealbreaker, but definitely noticeable.
Here’s the scoop: while refinancing applications took a 3% dip (sorry, homeowners looking to save a few bucks), purchase applications actually rose by 1%. In fact, compared to last year, we’re seeing 9% more folks throwing their hats into the homebuying ring. It’s as if the housing market is hosting a party, and more people are RSVPing “yes” despite the slightly higher cover charge.
Now, let’s talk inventory – that’s real estate speak for “how many homes are actually up for grabs.” Good news for potential buyers: both new and existing home inventories have been on the rise throughout 2024. It’s like the housing market shelves are being restocked, giving you more options to choose from. In August, inventory was up a whopping 36% compared to last year, reaching levels we haven’t seen since May 2020. Remember May 2020? Yeah, we’re trying to forget it too.
So what does this all mean for you? Well, if you’ve been on the fence about buying a home, now might be a good time to take a closer look. With more homes available and purchase applications on the rise, you’re not alone in thinking it could be time to make a move. Just keep in mind that while the median home sale price is up 3.2% from last year (now sitting at $434,050), price growth has been slowing down. It’s like the housing market is taking a breather after running a marathon. As always, your best bet is to crunch the numbers, consider your long-term plans, and maybe have a chat with a financial advisor before making any big decisions. Happy house hunting!
