This is Christina Swain with The Swain Team of Keller Williams. Here with your August monthly market update. We saw a slow down in the housing market in July. Most likely due to vacations. As August begins I am sure we will see a pick up as it is our last summer month and the kids will be headed back to school.
On July 31st the Federal Reserve lowered interest rates for the first time since 2008. Interest rates, which affect the cost of borrowing for mortgages and credit cards, are now set to hover between 2% and 2.25%.
When I checked in with one of my loan officers this morning she quoted me a rate of 3.375 for a conventional loan and 3.625 for a FHA loan.
So what does this mean for our local housing market you may ask?
It is a great time to buy.
And Land purchases and financing will be cheaper for homebuilders. And an increase in building will lead to the increase in the overall supply of homes.
We are seeing a slow down in the increase in home prices as they have risen faster than income levels.
Homebuilders also claim that mounting labor and supply costs have made it difficult to build single-family homes at affordable prices.
August Local Market Update