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We received some good news in July, that the latest Consumer Price Index is setting the stage for a possible late-summer surge! As inventory rebuilds, the pieces to a healthy housing market continue to come together to offer a rate relief for Buyers.
July’s CPI report showed a year-over-year increase of 3%, near its lowest level in more than three years. Rates responded immediately, dropping well under 6.90%, the second largest single-day drop of the year.
“In balancing risks, the Fed’s focus could now be toward a potential labor market deterioration versus in the first quarter, where we thought inflation could potentially reaccelerate,” says Zillow Senior Economist Orphe Divounguy. “They now have more cause to ease rates sooner; watch for the September meeting.”
So long as layoffs remain low, even a small decline in mortgage rates could provide an opportunity for potential buyers to make a late season push, boosting sales activity in the coming weeks and months.
“Sellers tend to retreat around this time of year, but a rate downshift may slow that,” he says. “Buyers who seize on this dip will see more options when compared to last year’s lows.” *
*Zillow July Market Report
Sunniest Regards!
Brian Burkett and Preston Russ, Brokers
Coastal Realty Group
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