Got that pre-approval? Check!
The fed funds rate was lowered last week by half a percentage point for the first time since 2020. With the rate cut fully anticipated by the market before the announcement, mortgage rates did not show any immediate downward movement after the announcement. The central bank’s latest move and its plan on future rate reductions, however, will benefit homebuyers and home sellers in the coming months. With mortgage rates remaining near the lowest level in two years and home prices softening through the end of the year, housing activity could pick up in the fall as consumers seize the opportunity of lower costs of borrowing and reenter the market.
The Federal Reserve cut rate by 50 basis points (bps) as the central bank finally felt confident enough about the sustainability of the inflation easing trend. It was the first rate cut in four years, and two more rate cuts will likely take place before the end of the year, as suggested by the Fed’s latest year-end projection.
The greater Modesto housing market shows signs of a hotter tempo, with inventory climbing in several price ranges! Month-over-month, the $300k-$500k segment saw a 25% increase in new listings, while the $500k-$800k range surged by a whopping 32%. Just in the past seven days, 35 fresh listings have hit the market. Check out the chart below for the most up-to-date inventory totals across all price ranges in Modesto.
While this boost in inventory is great news for buyers, it’s still a stubborn seller’s market out there. That said, we may be seeing the tide shift soon: the months-of-inventory figure—now at 2.3 months—is making a significant jump from August’s 1.5. If this trend continues, we could be in for a more balanced market before the end of the year!
P.S. For those curious, “months of inventory” is a measure of how long it would take to sell all the current listings if no new properties were added.
A quick guide to buying a home
Buying a house is a big decision, but with some basic steps, you can make the process easier. Here’s a simple guide to help you navigate buying a house:
Determine your budget: Before you start looking at houses, figure out how much you can afford. Consider your income, expenses, and any debts you have.
Get pre-approved for a mortgage: This will give you a better idea of what you can afford and make you a more attractive buyer to sellers.
Find a real estate agent: A good agent can help you find houses that meet your criteria, negotiate with sellers, and guide you through the buying process.
Start house hunting: Look for houses that fit your budget and meet your needs in terms of size, location, and amenities.
Make an offer: Once you find a house you like, work with your agent to make an offer. Consider factors like the condition of the house, the current real estate market, and the seller’s asking price.
Get a home inspection: Before closing the deal, hire a professional to inspect the house for any issues that could be expensive to fix.
Finalize the mortgage: Work with your lender to finalize your mortgage and ensure all necessary paperwork is in order.
Close the deal: Sign the final paperwork, pay any closing costs, and take possession of your new home.
Move in: Once you’ve closed the deal, it’s time to move in and start enjoying your new home!
Remember, buying a house can be a complex process, so don’t hesitate to ask questions and seek guidance from professionals along the way.
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Ed Justen -DRE: 02221512 - Affiliated with Keller Williams. Portions of this blog post created via artificial intelligence and lightly edited by the post author. All information presented here sourced from publicly available websites , including the CAR Market Minute Write-up
