This week was pretty calm in the mortgage world, with rates still hanging out near the lowest they’ve been all year. Here’s what stood out:
Inflation: Still Stubborn, but Steady
Existing Homes: Fewer Sales, Higher Prices
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Sales:
Down slightly from July.
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Median Price:
$422,600 (about 2% higher than last year).
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Inventory:
Still low overall, but 12% higher than a year ago.
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Time on Market:
Homes sat for 31 days on average, compared to 26 days last year.
New Homes: A Big Surprise
Builders: Feeling the Pinch
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Housing Starts:
Down 7% from July, lowest since April 2023.
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Permits:
Dropped for the sixth straight month.
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Builder Sentiment:
Still at its lowest since 2022.
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Incentives:
65% of builders are offering perks, and nearly 40% are cutting prices—the most since the pandemic.
What’s Next?
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Fed Comments & Tariffs:
Could give clues on future policy.
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Economic Reports:
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Wednesday: Manufacturing Index
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Friday: Employment Report (jobs, unemployment rate, and wages)
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Friday: Services Index
Quick Snapshot of the Week
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10-Year Treasury:
Up 0.05
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Dow Jones:
Up 100
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NASDAQ:
Down 200
The Fed pays close attention to inflation, and their favorite measure (called the PCE index) showed prices are still rising about 2.9% compared to last year. That’s the same pace as last month, so no big surprises. The Fed’s goal is 2%, but we haven’t seen that level since early 2021.Here’s the headline of the week—new home sales jumped 21% in August compared to July, way above expectations. They were also 15% higher than last year, hitting their best level since early 2022. Median price? About $413,500, which is also up 2% from last year.*(Fun fact: existing home sales count when deals close, but new home sales count when contracts are signed—so new home sales give us a sneak peek at where the market’s headed.)*Even though buyers are snapping up new homes, builders aren’t feeling too confident:Investors and markets are watching a few key things this week: