Looks like the Fed's inflation twist left economists baffled . But before that , let's take a look at this week's housing market data . Today is June 14th 2024 , and this is your weekly real estate market update . More people applied for mortgages this week than last week by about 9% Good news for anyone trying to buy a house right now .
But compared to last year , things are still a bit slow . That's down by 12% from a year earlier . The number of people Googling homes for sale is flat compared to last month , but compared to this time last year , searches are down a whopping 16% . This could mean fewer bidding wars but also potentially a slower housing market .
The median home price is now a whopping $393,627 . That's an all-time high and guess what ? It's the biggest jump in three months . Housing market is a bit hot again , but the question is can people afford it ? A bit hot again . But the question is can people afford it ?
Cracking the house market just got tougher because the median asking price for a home is now a hefty $417,475 . That's a significant jump , putting homeownership further out of reach for many . The median monthly mortgage payment is now $2,219.73 at a 6.9% mortgage rate . That's a lot of money to shell out each month .
Keep this in mind when budgeting for your dream home . More homes are hitting the market compared to last year . The number of new listings is up by 7.8% , which means there could be more options to choose from and potentially less competition . There are more houses on the market to browse .
The number of homes available for purchase is up by a 16.7% compared to last year . The typical house is only on the market for 31 days before selling . This means serious house hunting and quick decisions are needed to be made when you're out there looking for your next home .
So it's a weird time right now , as I will share with you what the feds just said about the interest rates and what's happening , and I'm going to give you my thoughts on the overall and what I think where the market is heading . And here's a brief rundown of what's currently happening in the US interest rate market .
In June , the CPI increased by 0.9% , which is higher than what experts predicted . This uptick suggests that prices are climbing faster than usual , putting pressure on people's budget .
For some , who are often juggling student loans , rent and other expenses , this inflammatory trend can mean having less money left over for discretionary spending on things like dining out or travel . The CPI report highlights various factors contributing to this inflammatory pressure .
Rising energy prices , spurred by increased demand as economies reopen , have driven up transportation costs . Additionally , supply chain disruptions and labor shortages have led to higher prices for goods ranging from electronics to groceries .
And for the millennials out there , already navigating financial challenges such as stagnant wages and high housing costs , these inflammatory pressures could further strain their financial stability as prices continue to climb . Some people may need to reassess their budget and find ways to adapt to this changing economic landscape . Changing economic landscape Now .
In addition to that , the markets are betting , I think , around 60% that the Feds are going to lower rates in September . The Feds lowering rate by a quarter percent will be good for real estate , as this report is on real estate will be good for real estate as it will spur buyers to come back into the market .
It will make affordability better and I think it's well much needed in the marketplace Now . Back in December those of you that have been listening to this podcast I reported that the feds said back in December that there were going to be three rate cuts in 2024 . They did a switcheroo on us no more three rate cuts because inflation has been so stubborn .
So we must wait and see , as it pertains to navigating and investing and deciding whether you're going to buy that home or not . Again , I will repeat this week , remember , there's been six to 10 million new immigrants that came into this country . That's still a big problem , that's not going to go away anytime soon and we have to solve for that .
So if you have the opportunity to get into a house today , even though that interest rates are a little bit higher , and then wait until interest rates come down later , that would be the strategy I would use . Now , I'm not a financial advisor , nor am I giving you financial advice , just my thought , what I would do If you're an investor . Stay in the game .
Investors , we have to keep playing , regardless of the market condition . You just have to adjust accordingly . And this has been your weekly real estate market update . I'll see you guys next week . Peace .