What's Up with Real Estate

Mortgage Rates Drop

There is good and bad news on the economy. Good news is that we seem to keep humming along, bad news is that inflation is starting to rear it's ugly head as the CPI(Consumer Price Index) rose 2.7% in June vs. 2.4% in May. There's a great chart in the CNBC article that breaks it all down.
On July 4th the President signed his signature legislation into law and the state and local tax deduction(SALT) got a generous, albeit temporary, boost. This is great news for many in high cost areas that have not been able to fully deduct their mortgage interest. 
The Fed held rates steady last month, no one is expecting a cut in July. They reiterated that they are in a wait and see mode and that they do expect an economic slowdown. It's anticipated that they will be lowering the Fed Funds rate twice this year but the big question is whether they will be 1/4 point or 1/2 point moves.
Home sellers may be getting a huge windfall if Marjorie Taylor Greene gets her proposal through to eliminate, yes, eliminate the capital gains tax on the sale of primary residences. While this was just introduced it will be interesting to watch the sausage making around this one. Even if they doubled the current exemptions of $250,000 for single taxpayers, $500,000 for married couples, the effect on the real estate market would be a huge deal.

While they are lower than last month, it's been a tough two weeks for mortgage rates, with stronger than expected jobs growth, higher CPI (inflation) and rising bond yields globally. According to the NAR, if mortgage rates hit 6% it should allow many buyers that are currently on the sidelines to jump in. The good news for buyers is that home inventory levels continue to rise. That means more choices AND more negotiating power. And the bad news for sellers is buyers will have more negotiating power. Having said all that, a good experienced agent can help you navigate where and when to negotiate so you can get the best outcome.
See local stats below, still a mixed bag as some areas continue to rise and others are down.