Step Inside The Market - Week 27, 2023

Step Inside Weekly 7/6

☀️Hello Everyone,

In this week’s recap, we will focus on the current trends within the residential real estate market, and cover some helpful tips for refinancing.

Over the last week ending, the average contract interest rate for a 30 year fixed mortgage increased to 6.85% from 6.75%.

⬇️ As a result, purchase applications declined by 5% week-over-week, which snapped a 3-week increase in purchase applications. In addition, refinance applications dropped by 4% week-over-week.

The combined resulted in a 4.4% decrease in applications.

🙀 The early indication is that rates are moving above the 7% mark for average 30 year fixed mortgages!

👎 Based on the latest from the National Association of Realtors, pending home sales shrank by 2.7% in May. The main drag on these figures are home sales in the Midwest down by 5.3%, South down by 4.4% and West down by 6.1%.

📈 However, pending home sales in the Northeast rose by 12.9%.

🗣️ If you have any clients who are looking to refinance to help reduce monthly costs, here are 5 mistakes to avoid in the refinance process:

1. Not checking your credit report before applying

2. Not shopping around for lenders

3. Focusing only on interest rates

4. Not considering how long you will stay in the property

5. Not factoring in closing costs

🎤 If you are speaking to clients who are hesitant to buy in the current market, here is a helpful article to help them think outside the box and to consider these tips:

1. Buy now, refinance later

2. Make a larger down-payment

3. Consider different loan options (Fixed v ARMs)

4. Stay put and improve your current home to maximize future value

5. Buy down your rate

6. Play the long game and wait on rates to decrease

😊 Thanks for reading. Comment your thoughts below, we would love to hear from you!