Market Moving News: What Homebuyers and Sellers Need to Know

Welcome back to the ever-evolving world of real estate! Whether you're planning to buy, sell, or simply staying informed, understanding the latest market trends is key to making savvy decisions. Here's what’s happening in the housing and mortgage landscape, with a few insights to help you navigate what’s next.

Mortgage Rates: Could Relief Be on the Horizon?

The average 30-year mortgage rate currently sits at 6.93% (via Mortgage News Daily). While rates have remained high, this week’s economic data could shake things up.

Why is this important? Mortgage rates are heavily influenced by the bond market, which reacts to economic indicators—especially labor market data. If job growth slows or unemployment rises, we could see some downward pressure on rates.

Here’s what to watch for this week:

• Monday: November ISM Manufacturing PMI – A slowdown in factory activity could support lower rates.
• Tuesday: October JOLTS Job Openings – Fewer job openings suggest the labor market is cooling, which bond markets like.
• Wednesday: November ADP Payrolls + Fed Chair Powell’s Speech – Powell's remarks could provide clues about future rate policy.
• Thursday: Initial Jobless Claims – An increase in claims would indicate softening in the labor market, potentially easing rate pressures.
• Friday: November Jobs Report – If job growth underperforms and unemployment ticks up, mortgage rates might edge lower.

For anyone hoping to buy, this week could provide some much-needed relief.

Home Prices: Steady Growth Despite Challenges

Even with mortgage rates near 7%, home prices continue to climb. According to CoreLogic, U.S. home prices rose 0.3% from August to September, marking the 16th consecutive month of gains. Year-over-year, prices are up 3.9%, driven by low inventory and persistent buyer demand.

Looking ahead, experts anticipate home price growth of 2–4% in 2024, with similar trends projected for 2025. Low inventory remains the primary driver, but regional variations will influence individual markets.

For buyers, this means acting sooner rather than later could save you money. For sellers, it’s still a great time to capitalize on strong demand and rising prices.

Pending Sales Surge as Buyers Return to the Market

The housing market is seeing renewed energy, with pending home sales jumping 12.1% year-over-year in the four weeks ending November 24. This is the largest increase since May 2021, signaling that buyers are returning despite high rates.

What’s driving this trend?

• Mortgage Applications: Up 52% year-over-year as of November 22.
• New Listings: Increased by 10.6% year-over-year, giving buyers more options.
• Median Sale Price: Up 7% from last year to $386,625.

While these trends are promising, the next few weeks will reveal whether this momentum is sustainable or just a seasonal uptick.

2025 Loan Limits Are on the Rise

Here’s some good news for buyers in high-cost areas: The Federal Housing Finance Agency (FHFA) has announced a new conforming loan limit of $806,500 for 2025. That means you can purchase an $830,000 home with just 3% down using conventional financing.

For buyers currently considering jumbo loans, this change could result in better rates and terms, especially in competitive markets like the Bay Area.

Should You Buy Before You Sell?

If you’re thinking of making a move but worried about timing, a bridge loan could be the perfect solution.

Here’s why:

1. Skip the Sale Contingency: Your offer becomes more competitive without the need to sell your current home first.
2. Seamless Transition: Avoid the hassle of temporary housing and enjoy a smoother move.
3. Flexibility in Selling: Take your time to market your current home for the best possible price.
4. Maximize Your Sale Price: Hold out for the right offer without financial pressure.
5. Act Fast on New Listings: Jump on opportunities without delay.

Bridge loans can make a world of difference, especially in fast-moving markets where timing is everything.

What Does This All Mean for You?

The real estate market is always shifting, but understanding these trends can help you make informed decisions. Whether you’re planning to buy, sell, or invest, now is the time to position yourself for success.

Thinking of buying but concerned about rates? Let’s explore your options. Planning to sell and unsure about timing? We can strategize together. Wherever you are in your real estate journey, I’m here to help.

The market is moving, but your goals remain the priority. Let’s connect and create a plan that works for you.

Stay tuned for more updates, and as always, feel free to reach out with questions or to discuss your unique real estate needs.