Loan Rates See Biggest One-day Drop in Over a Year
Last week, the average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29%. This was in response to a weak August employment report.
It's the lowest rate since early October 2024, and the biggest one-day drop since August 2024. Rates are finally breaking out of the high 6% range, where they've been stuck for months.
It's good news for buyers, especially given high home prices. For example, a qualified buyer who makes an offer for a home priced at $450,000 (with 20% down) at 6.29% may end up with a monthly payment that's $169 lower than if their loan's rate was 7%.1
Easy Ways to Get More YouTube Views
If you're new to YouTube, you're probably looking for ways to start building an audience of followers. Here are a few strategies that you can put to work in just minutes.
Respond to your comments. After you've posted a new video, be sure to check back to see if it's earned any comments. It's a great way to start conversations and find inspiration for your next video.
Cross-promote your videos. If you've already got a busy Instagram, LinkedIn or Facebook account, be sure to mention your foray into YouTube. It's effective, but also easy to overlook.
Carry out competitor analyses. Take a peek at their videos' comments and note their follow-up questions. These may work well as inspiration for your next YouTube video. You can also visit a competitor's profile and click on the Popular tab to see if you can borrow a topic or two.
Emphasize your USP. What gets you the most referrals and compliments? What makes you interesting? Whether it's your skill at finding the ideal properties for buyers, reliability, or negotiation talents, put these up-front when you're making notes for future videos.2
National Housing Market Tops $55 Trillion
Even though some states actually lost value over the past year, the national housing market is currently worth a record-breaking $55.1 trillion. This is up by $20 trillion since 2020.
If you're having trouble calculating one trillion, it's equal to a million million. Visually, a stack of 100-dollar bills totaling one trillion dollars would be 631 miles high, which is 600 miles above the International Space Station.
The state of New York came in first place with a $216 billion annual gain in value, while Florida posted a -$109 billion decline. Other states seeing major value gains included New Jersey with $101 billion, Illinois with $89 billion and Pennsylvania with $73 billion.
New construction has added $2.5 trillion in housing value since early 2020, which provided a 12.5% boost to national market value.3
Coming Soon: Two Numbers That Will Affect Interest Rates
As you're probably aware, one reason why mortgage interest rates fell last week is that employment numbers were lower than expected. Here are two more indicators happening this month to watch out for:
The Bureau of Labor Statistics will release the newest Consumer Price Index (CPI) and real earnings data Thursday, September 11th. CPI numbers play a key role in determining where inflation is headed.
The Federal Reserve is expected to announce their decision whether to lower interest rates on September 17th. While most economists are expecting a rate cut, higher-than-expected inflation figures may minimize or even postpone this announcement.4
Buyers' Market or Price Reset?
Before the arrival of a global pandemic and mega-low interest rates, 50 to 55% of properties sold were below their asking prices. During 2021 and 2022, low interest rates and intense buyer demand contributed to only 25% of properties selling for asking prices (and taught many agents to survive 12-hour workdays). This year, we're almost back to pre-pandemic pricing.
If your sellers are confused about the state of the 2025 market, or if you suspect they'll insist on a too-high price, here are some talking points to keep in mind.
Explain how starting out with a too-high price can cause major problems. This is due to a phenomenon nicknamed "stale listing stigma". When a property remains unsold for weeks or months, many buyers will assume that there's something wrong with it. Many will avoid the property even after a major price reduction.
Discuss strategic pricing and the local real estate "climate" with sellers. Remind them that they can't rely solely on what nearby homes are priced for, or what neighbors got for their homes last year.
Encourage sellers to make their property as attractive as possible. Sellers who carry out repairs and clear clutter have a much better chance of a faster sale. (If the property has an elderly garage door, replacing it with a new, automatic one won't break the bank and is particularly attractive to buyers.)
Explain how it's important to welcome negotiations with buyers, especially within markets with higher inventory numbers. These prove to the buyer that the seller is aware of market conditions.5
Sources: 1cnbc.com, 2buffer.com, 3zillow.mediaroom.com, 4investopedia.com, 5keepingcurrentmatters.com
Recent Comments