Would-be homebuyers seem to be holding their breath, hoping that the Fed begins cutting rates soon. Home sales have remained subdued this spring/summer. But with the inventory of homes for sale rising, buyers are regaining some negotiating power.

A string of favorable data (lower inflation, higher unemployment rate) has convinced the market that the Federal Reserve will begin cutting short-term interest rates in September, and mortgage rates are already moving lower.

Rate cuts are definitely coming. Fed Chairman Jerome Powell sounded a bit more dovish in his testimony to Congress, and then the CPI inflation report for June came in lower than expected. It is very nice to see 30-yr mortgage rates moving below 7%!

In most cities across the nation, home prices continue to rise — despite high mortgage rates. That’s a tough combination for buyers, leading to lower transaction volumes.

Inflation continued to trend lower and retail sales were flat in May. Excluding the “blowout” May jobs number from the BLS, recent data releases have been noticeably softer.

After taking a short break, we’re catching you up on two weeks of real estate news. With so much to cover, we’ve broken it up into themes.

Average mortgage rates moved up nearly half a percent in April, which hurt home sales. But rates have fallen since then thanks to cooler inflation, employment and retail sales figures. Will this be enough to put the groove back in spring sales?

A string of bond-friendly data releases (BLS jobs, retail sales, CPI inflation) propelled average 30-yr mortgage rates back below 7%.

Job growth was slower than expected in April. The national inventory of homes for sale continues to rise, but prices keep surprising to the upside.

The Case-Shiller (+0.4% MoM) and FHFA (+1.2% MoM) home price indices showed renewed home price appreciation in March, but the lack of recent progress on inflation kept the Fed on hold — again.

A very odd week, with solid new and pending home sales figures, but a “sneak peek” at Friday’s PCE that spooked the bond market even as the economy cooled.

Another rough week for buyers, as mortgage rates approached 7.5% in response to a blistering retail sales figure and Jerome Powell’s crisis of (inflation) confidence.