Today's Market News:
Mortgage Interest Rates Continue Climbing
Mortgage rates continued to be affected by changes in the bond market, reaching their highest level since November 2023. Rates continued to increase this week, with the average on the 30-year fixed rate mortgage hitting 7.58%, according to Mortgage News Daily.
According to the Mortgage Bankers Association's seasonally adjusted index, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased last week to 7.30% from 7.12%. Points rose to 0.75 from 0.73, including the origination fee, for loans with a 20% down payment.
Applications for new purchase financing fell 4% for the week and were 14% lower than the same week one year ago. Borrowers hesitated as interest rates rose, while home prices are still rising in many areas.
"Mortgage rates moved higher again on Tuesday as the bond market continues recalibrating expectations for Fed policy, economic growth, and inflation," wrote Matthew Graham, chief operating officer at Mortgage News Daily.
More home buyers are looking for savings, which translates into more applications for adjustable-rate mortgages (ARMs). Contact me to learn more about ARM financing, or refer your buyers to me.1
Some Bootiful October Marketing Promotions
The weeks leading up to the Halloween holiday provide you with plenty of opportunities to create your own marketing premiums and events. It's also a good time to co-host an event with a local business, especially if you're new to the area and looking for ways to introduce (or reintroduce) yourself.
Pumpkin Carving Contest. If you're on a budget, you can invite your social media followers to share photos of their jack-o'-lanterns until a set deadline, then publish a voting poll for the best entries. Or you can go all-in with a pumpkin carving contest at your office where you supply the materials.
Spooky Open House. Enjoy dressing up for Halloween? This month's Open House events are a great time to put on a fun costume and pass out some early Halloween treats.
Reverse Trick or Treat. Put on a costume and visit neighborhood homes on Halloween evening. But don't ask for treats — provide them. This can be a premium item or small bag of candy. Introduce yourself by creating colorful labels with Canva or similar software, and attaching them to your treats.2
How To Debunk Lingering Fears About Another Market Crash
Both homeowners and would-be buyers may worry about the possibility of a market crash similar to what we saw in 2008 and 2009. (Many Generation Zers have the opposite outlook — 58% want a housing market crash, thinking it would lower home prices.) But today's market scenario isn't typical of a crash.
Here are some major differences between the 2008 and 2026 markets.
The 2008 mortgage meltdown happened when there were way too many homes for sale. According to NAR data, inventory levels hit a 13-month high during early 2008. In addition, some newer homeowners owed more on their mortgages than their home was worth.
So what's happening right now? While the Iran conflict is making some economists nervous, the 2026 housing market is considered stable. Instead of being "underwater", many 2026 homeowners have comfortable levels of equity.
Thom Malone, principal economist at real estate data and analytics platform Cotality, described it as follows:
"We are in a period of low sales and price growth that mirrors the disconnect between incomes and home prices seen during 20th century recessions. This time, however, the dynamics are reversed: rather than an economic collapse, a housing surge is waiting for the rest of the economy to catch up."3
More Sellers Ready to Negotiate
Even as mortgage interest rates continue to rise, opportunities still exist for your buyers. More home sellers are dropping their asking prices in response to slower sales.
Just over one in five (21%) of U.S. home sellers dropped their asking price during the four weeks ending September 20th, up slightly from 19.8% a year earlier and the highest share for this time of year (according to Redfin records). In addition, more sellers are pricing realistically, with more pricing in line with today's market conditions and fewer still hoping for the 2021-2022 market to return.
Your buyer clients may still want to consider offering below asking price on homes that have been sitting on the market for more than a month. Seller concessions are also popular, as nearly half of the nation's buyers are getting them. Sellers are offering money toward repairs, closing costs and/or mortgage-rate buydowns to close a sale.4
Traditional Staging Versus AI
While staging removes distractions and helps buyers see the home's space, function, and strongest features, it also provides a better walk-through experience. A NYC agent discovered this by eventually switching from virtual to traditional staging.
After listing an East 62nd Street unit with virtual staging, she waited four months for a single offer that later fell through. When she relisted with full staging, the home saw a 169% increase in views and 50% more inquiries and tours, with multiple serious buyers expressing interest and submitting offers.5
Sources: 1cnbc.com, 2business.nextdoor.com, 3finance.yahoo.com, 4redfin.com, 5realtor.com.
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