The housing market—both locally and nationally—continues to show signs of possible improvement. As I mentioned previously, it’s still too early to say we’re in a definite trend of recovery, but home sales numbers suggest that improvement may be on the horizon. The Fed lowered rates by a quarter of a point last week, though this has had little impact on mortgage rates so far. Any current market improvement is most likely due to growing buyer confidence. Continued rate cuts by the Fed could go a long way toward convincing homebuyers that better times are just around the corner. The following is an article from the National Association of Realtors published late last week.

“The latest home sales numbers appear subdued, but a closer look shows signs of progress and growing confidence among home buyers. The National Association of REALTORS®' Pending Home Sales Index–a forward-looking indicator based on contract signings–showed no change in September compared to August and down just 0.9% annually, but that translates to holding steady and matching the second-strongest pace of the year, Lawrence Yun, NAR's chief economist, says.

Economists aren't shrugging off that progress. The latest housing report, released Wednesday, follows NAR's existing-home sales data showing a 4.1% annual increase in September. Contract signings last month saw the largest monthly gains in the Northeast (up 3.1%) and South (up 1.1%), signaling possible sales boosts ahead in those regions.

Still, Yun cautions that contract signings "have yet to fully reach the level needed for a healthy market," even as mortgage rates hit a one-year low. "A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market," he says.

Home buyers do appear to be gradually re-emerging, however. Mortgage applications for home purchases-a gauge of future buying activity-have posted consistent double-digit annual gains, rising 20% higher than a year ago in mid-October, according to Mortgage Bankers Association data. In addition, first-time buyers made up 30% of existing-home sales in September, up from 26% a year earlier, NAR reports.

So, What Are Buyers Waiting For?

A newly released CNBC Housing Market Survey shows that 72% of real estate agents say their clients expect mortgage rates to fall further-which may be prompting some to hold off. But Matt Schulz, chief consumer finance analyst at LendingTree, says those who've been sitting on the sidelines should talk to a lender to see if recent market drops could already translate into real savings.

Freddie Mac reported the 30-year fixed-rate mortgage averaged 6.19% last week, its lowest level in more than a year. That's a significant shift from rates above 7% at the start of 2025. A recent LendingTree analysis found that rate reductions from January to July saved buyers an average of $40,000 over the life of a 30-year loan or lowered the average monthly mortgage payment by about $112. With further rate declines since then, savings could be even greater.”

Have An Awesome Week!

 

Stay Healthy!  Stay Safe!  Remain Positive!  Trust In God!

Sincerely,

Galand

galand@galandhaas.com

541.349.2620