Glimmers of Hope for Home Buyers Arise as Inventory Inches Up

Blog posted On June 21, 2024

Higher-trending mortgage rates getting you down? Here’s something you can get excited about: according to Realtor.com, there are 35.3% more homes on the market than this time last year. Even more exciting news: there is a rising number of affordable homes hitting the market.

The POSITIVES of the current market

In the latest monthly housing report from Realtor.com, May marks seven months of growth of the number of homes for sale. Here are some other snippets of hope:

• Lower-priced homes rising faster: Affordable homes are climbing in the market, with Realtor.com showing “46.6% more homes on the market in the $200,000 to $300,000 range” compared to other high-price segments
• More incentives: Sellers & builders know that higher rates are keeping many buyers on the sidelines. To help attract more buyers, sellers or builders might offer incentives like payment buydowns
• No more rate hikes: The Federal Reserve has reaffirmed that the next move will be a rate cut and NOT a rate hike
• Equity growth: Home values are still holding strong. If you buy now, you could be looking at some serious equity growth over the next couple of years while other buyers are missing out on the sidelines

Still hesitant about high rates?

• Patience isn’t always a virtue: Some opportunities (or homes) may not come again, so remember: date the rate, marry the home
• Save now & later: While you’re dating your rate, you can keep an eye out on the market rates. If they fall after you’ve purchased, you can refinance to a lower rate with no lender fees* and a $1,000 credit toward third party fees (hint: ask us about Rate Rebound!)
• Buydown options: You can also explore buydown options that can give you a mortgage payment based on a lower interest rate for up to 3 years

The housing market is inching back to normality, and taking the leap at the tail-end of a seller’s market could be beneficial in the long run. Housing hesitations are understandable, but there is hope that a positive shift is on the horizon. If you want to learn about ways you can buy now, let us know!

Source: Realtor.com, HousingWire

*CMG Home Loans will cover all customary lender fees which are processing fee, administrative fee, tax service fee, appraisal fee and credit report fee. In addition CMG Home Loans will also credit the borrower up to $1,000 towards additional third-party fees. This offer does not cover discount points. Credit cannot exceed total fees. Rate Rebound is only valid on future conventional conforming, government, and jumbo loans in our retail channel (future Construction Loans, All in One, HELOCs, Bond or HFA loans are excluded). There may be additional restrictions based on investor. Offer may not be redeemed for cash or credit and is nontransferable. Offer cannot be retroactively applied to any loans. Offer may not be used with any other discounts, promotions or interest-only/buy-down and second lien products. This offer is subject to changes or cancellation at any time at the sole discretion of CMG Home Loans. Additional restrictions/conditions may apply. This is not a commitment to lend and is contingent on qualification per full underwriting guidelines. Program will be available on loans disclosed on or after 11/1/22. Program is applicable for refinances 6 months after closing up to 5 years from original note date and with a net tangible benefit which includes a rate reduction of 0.5%, going from an ARM to fixed rate, reducing loan term, movement to a more stable product, or a lower principal and interest payment. By refinancing the existing loan, the total finance charges may be higher over the life of the loan.