Here’s a brief market update for August 2021.
According to the National Association of Realtors, in July Pending Home Sales took a modest dip for the second month in a row. This index of signed contracts on existing homes foretells a small decline in closed sales in August. The problem remains supply, though it’s slowly increasing.
Construction Spending for July was up overall according to the National Census Bureau. Since some sectors were down, the increase was largely due to a big gain in residential construction, up 0.5% from June and up a strong 26.5% from July 2020. Way to go, home builders!
Freddie Mac gave us some insight for the upcoming season, “Heading into the fall, home purchase demand is stable, home sales remain…above pre-pandemic levels, and inventory…is tight but improving modestly. These factors will allow for home price pressures to ease.”
The total active inventory of homes for sale is now down just 25% versus a year ago, according to realtor.com. The gap between this year and last has been shrinking every week for the last five months.
Bond prices slipped a little overall, though the UMBS 3.0% was UP .11, to $104.66. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate stayed flat, remaining near historic lows. Mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. Our mortgage partner, Tom Tevis can answer your questions, and you can reach him at https://www.applywithteamtevis.com/ or 972-754-4677.
This past week in the US economy, jobs were weak and the stocks mixed going into the Labor Day weekend, the S&P 500 and the Nasdaq ended up, but the Dow declined, which was largely the result of the unexpectedly disappointing August jobs data.
Check back for more market updates, if you have any questions regarding this brief market update for August 2021, please give me a call!
Beth Brake REALTOR®
Positively impacting you as you move toward your dreams.