Get the latest real estate news with this quick and easy-to-understand update!
Real Estate Market:
- The average rate of a 30-year fixed home loan as of January 4, 2024, is 6.62%, which is a 2.2% increase from the same time last year. Mortgage rates remain higher than we'd like, but with the Fed's last three decisions to hold rates steady, we are seeing a minor rate decrease.
- In November 2023, the median sales price of existing homes in the U.S. lowered to $387,600. That's a 5.4% decrease from June 2023.
- Housing inventory is down 1.7% from October 2023 but up 0.9% from a year ago. Housing inventory remains one of the biggest hurdles for buyers in 2024 as homeowners stay put with their record-low rates from 2020 and 2021.
- U.S. homeowners hold $32.6 trillion in equity, up 53% from 2020, and the average homeowner has $274k in equity due to home price increases.
- The FHFA officially released the 2024 conforming loan limits, with the limit for a single unit increasing to $766,550. That's $40,350 more you can use to finance your new home!
Financial Market:
- The U.S. annual inflation rate increased to 3.4% in December, which was 0.2% stronger than the forecasted 3.2%. However, inflation this year has risen at its slowest pace in more than two years.
- 216,000 new jobs were added in December 2023, up from the previous months, marking a steady pace in hiring. Unemployment held steady at 3.7%.
- Real gross domestic product (GDP) increased at an annual rate of 4.9% in the third quarter of 2023. That's 2.8% higher than Q2 - A growing GDP signifies a healthy economy.
What This Means for You
We’re seeing more experts agree now is a better time to buy since home values have trended down slightly, and winter months historically mean more negotiating power for buyers.
Current home buyers can navigate rates by leveraging our Rate Relief program. Future home buyers can sign up for our Rate Watch program and get alerted if rates drop later this year.
Want to get in touch with a Mortgage Expert to find out if one of these options is right for you? Click here to get started!