Fall Market Update
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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 November 2, 2023, is 7.76% - that's an 11.6% increase from the same time last year. Mortgage rates remain high, but with the Fed's last two decisions to hold rates steady, many hope we are nearing the end of these higher rates.
- In September 2023, the median sales price of existing homes in the U.S. lowered to $394,300. That's a 3.8%% decrease from June of this year.
- Housing inventory is still historically low but is up 1.8% this September compared to July. Housing inventory remains one of the biggest hurdles for buyers this year as homeowners stay put with their record-low rates from 2020 and 2021.
- U.S. homeowners hold $31.6 trillion in equity, up 34.7% from 2020, and the average homeowner has $200k in equity due to home price increases.
- Though the FHFA has not yet officially released the 2024 conforming loan limits, the limits will likely rise, allowing borrowers to qualify for larger loans. These limits are expected to rise by 3.28% to $750,000 for conventional home loans in 2024. Churchill Mortgage is implementing these new limits early, so you don’t have to wait until next year to take advantage of the increase.
- The U.S. annual inflation rate has slightly increased to 3.7%, up 0.5% from July. Inflation this year has risen at its slowest pace in more than two years.
- 150,000 new jobs were added last month, down from the previous months, marking a slowdown in hiring. Unemployment sits at 3.9% as of October.
- Real gross domestic product (GDP) increased at an annual rate of 4.9% in the third quarter. That's 2.8% higher than Q2 - A growing GDP signifies a healthy economy.
What This Means for You
Like Q1 and Q2 of 2023, we are seeing improvements in most sectors of the industry, but that doesn't mean it isn't still a challenging market. Home buyers can mitigate high rates by leveraging our Rate Relief program.
If you’re looking to stay in your current home but need to do renovations to accommodate your current needs, we can help you look at your cash flow options. With equity levels on the rise, tapping into this resource can lead to more favorable loan terms and lower monthly mortgage payments.
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!