Existing home sales hit another high for the year in July as year-over-year growth hit double digits. Inventory remains tight on a national level as the increased pace of sales continues to outpace the number of homes coming onto the market. The pace of year-over-year price increases slowed somewhat in July, and on a monthly basis prices actually declined. Prices typically peak in June and slowly decline for the remainder of the year. Mortgage rates remain subdued at the moment as recent market turmoil has likely caused the Federal Reserve to reevaluate the timing of any interest rate increases that may occur this year.
30-year interest rates took a slight downward tick in August amid serious turmoil in global markets. Currently, Freddie Mac reports the following figures: 30-year fixed rate, 3.93%; 15-year fixed rate, 3.15%; 5/1-year adjustable rate, 2.94%.
Homes sold at a seasonally adjusted annual rate of 5.59 million homes in July, up 2.0% from June and up 10.3% from the same month of the previous year. July posted another high for home sales post-housing crisis, and most indications show continued strength in the housing market in the next few months to come.
Home prices declined slightly in July to $234,000, down 1% from June but still up 5.6% from the same month of last year. As we move into the fall months, we should begin to see some seasonal alleviation on prices; however, year-over-year gains will likely remain strong. See your homes value.
The actual number of homes for sale in July was down 5% compared to the same month of the previous year. This led to the months of supply inventory, which measures the relationship between supply and demand, to drop to 4.8 months. This number remains tight as low interest rates spur more buyers to enter the market. New home construction has recently shown signs of increasing; however, this recent uptick has not yet been enough to alleviate pressure on existing homes.