Dear user,
Here’s your real estate market update for Temecula and the surrounding areas this week, with important news on interest rates.
Market Trends:
We’re seeing continued stability in the housing market. New listings are up slightly, giving buyers more choices, but well-priced homes are still in demand, especially in sought-after neighborhoods.
Home Prices:
Home prices have remained steady, with a 1% increase in the median price over the past week. Even with a slight rise in inventory, sellers are continuing to benefit from stable market conditions.
Federal Reserve Update:
Federal Reserve Chairman Jerome Powell recently hinted that the Fed may cut rates later this month. Here’s what that means for you:
HERE’S WHAT IT MEANS:
It’s NOT a mortgage rate cut:
The Fed’s rate cut refers to the benchmark interest rate—not mortgage rates. Mortgage rates typically adjust ahead of these decisions, and by the time a Fed cut is announced, the mortgage market has already reacted.
Mortgage rates are already trending lower:
After Powell’s hint, the bond market and mortgage rates dipped to two-week lows. If this trend continues, we could see more favorable mortgage rates in the coming weeks, though nothing is guaranteed until the Fed’s official decision.
Competition could heat up:
With mortgage rates trending lower and fall just around the corner, more buyers may enter the market before winter. This could increase competition for available homes, especially as inventory remains limited.
WHAT TO DO NEXT:
• Consider a rate lock: Locking in your rate now can protect you from any potential rate hikes before you close on a loan. If rates drop further, many lenders allow you to lower your locked rate!
• Prepare your paperwork: If you’re planning to buy or refinance after the Fed’s decision, get your documents ready now—pre-approval, W2s, disclosures, etc.—so you can act quickly when the time comes.
If you’re unsure what steps to take to prepare, reach out and I’ll guide you through the process!
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As always, I’m here to help with any questions you have about the current market or the impact of changing rates. Let’s stay ahead of the curve!
Best regards,
Damien Simon
Your Local Real Estate Expert
