Step Inside The Market - Week 16, 2023

Good Morning Everyone !

We have some updates for you before you roll into your weekend.

In this week’s recap, we will be focusing on trends within the residential real estate market, changes coming from the FHFA and some useful things to consider as we enter the summer buying season.

👀 Mortgage demand drops by as much as 10% as interest rates increase as affordability issues continue to be a challenge for new homebuyers.

😔 Over the past week, we have seen an increase in mortgage rates across all products, as the broader economy continues to digest things like the latest FED Rate hike and the uneasiness in the banking sector.

📣 If you are working with a qualified prospective borrower, it may be wise to educate them on ARM products that can provide short-term leverage to the currently high interest rates.

😱 Due to a recent change on mortgage fees by the FHFA, fees are likely to drop for first-time home buyers and those with riskier credit profiles, compared to an increase in fees for qualified home buyers.

📉 Home prices continued their downward tumble in March: Median sale prices were 3.3% lower than a year ago — the biggest annual drop since 2012, per Redfin, Emily Peck writes for Axios Markets.

🙋 Why does this matter? It's the second month in a row of negative year-over-year prices. Mortgage rates are high and homeowners don't want to sell and lose their current mortgages with favorable rates.

🔥If you are working with a buyer who is interested in purchasing a new build, you should share these useful tips from Realtor.com so that they are equipped to make the right decision on their next dream home.

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