My View of the Market – July, 2024

Mortgage companies tend to react swiftly to such signals, often reducing rates in anticipation. You know the cycle. Lower rates drive more buyers into the market. We’ve seen it happen many times. But this time may be different. Here’s what sets this situation apart:

1. Increased Inventory: We’re seeing the highest inventory levels in the past five years. Over the last two months alone, inventory has surged by 25% month-over-month. This rise in available homes creates a unique opportunity for buyers.
2. The “Sweet Spot”: With the Fed possibly cutting rates soon and more inventory available, there’s a potential “sweet spot” for buyers. This window of opportunity could exist between now and when the rates are officially cut, plus a couple of weeks for the market to fully adjust. Those who act quickly and get pre-qualified now will be better positioned to take advantage of this shift before potential multiple-offer situations become the norm again.
3. Seasonal Trends: Traditionally, the market slows down from September to December. However, this year could defy that trend, given the anticipated rate cuts and increased inventory.

If you’re considering buying a home in the near future, now might be the perfect time to get ahead of the curve. Getting pre-qualified will give you an edge and help you navigate this evolving market more effectively. Call me and I’ll connect you with a mortgage broker that can help you find the best rates.