Stay up-to date with the latest news in Real Estate Development.
Mortgage rates are falling, and demand is beginning to fall
Mortgage rates' largest weekly drop in a year spurred a 2.5% rise in applications. The 30-year fixed rate fell to 7.61% from 7.86%. Refinancing rose 2% but purchase applications, despite a 3% increase, were down 20% from last year. High home prices counteract lower rates. Last week's Fed tone and job data pushed rates down. Current rates are similar to last year's, and most homeowners have sub-4% rates, dampening refinancing appeal. The upcoming week's economic events are unlikely to affect mortgage rates much.
How the cost of buying and selling a property will change following a landmark court decision on real estate fees
A jury ruling against the National Association of Realtors (NAR) over high commissions and pricing practices may disrupt real estate. NAR is appealing the $1.8 billion decision, affecting Missouri markets. With rising interest rates and a sales decline, the verdict adds to agents' woes, potentially reducing annual commissions by 30% and impacting agent incomes. Legal trends may increase fee transparency and negotiations, while lawsuits could reshape buyer agent roles, possibly diminishing their use and altering market dynamics.
Homeowners associations can be beneficial or detrimental to buyers. When house hunting, here's how to vet HOAs
Amid rising interest rates and low supply, homebuyers face high costs and competitive markets. HOAs, governing neighborhoods and maintaining common areas, can add to expenses with fees up to $1,000 monthly. Budget missteps may lead to extra assessments. With 84% of new homes in HOAs, due diligence is key. Home types vary in HOA involvement, from single-family homes to co-ops. To vet an HOA, check legal documents, budgets, reserve funds, community liens, and attend meetings to gauge community health and governance.
The Federal Reserve keeps interest rates steady. Here's what that implies for your bank account
The Fed held the federal funds rate at 5.25%-5.5%, not easing high borrowing costs. Rate hikes aim to curb inflation towards a 2% target. Consumers' fixed-rate loans from pre-hike periods offer some shield, but new credit card APRs exceed 20%, impacting debt-laden consumers. Mortgage rates have soared to 8%, while HELOCs near 9%, slowing purchases. Auto loan rates are at 7.62%, and federal student loan rates have risen to 5.5%. Conversely, savers benefit, with online savings accounts yielding over 5%.
