It’s September… which means movement in the market.

So… what’s happening?

MORE BUYERS ARE LIKELY TO ENTER THE MARKET. WHY?

1. There has been an increase in buyer loan applications (Source: Penrith Loans).
2. August saw a 30% increase in inventory, likely due to buyers staying on the sidelines in anticipation of lower interest rates, leading to a surplus of homes on the market.
3. The Federal Reserve meets on either September 17th or 18th to adjust the prime rate.

THE FEDERAL RESERVE…

1. Is predicted to lower the prime* rate.
2. With the drop, in turn mortgage rates are likely to go down .25% (maybe even .5%).

*A prime rate is the interest rate used by banks to lend to customers with good credit. 

WITH THESE CHANGES…

1. Buyers on the sidelines will now enter the market.
2. Excess inventory from the summer will now be absorbed by these new buyers.
3. Sellers will take notice.

THESE SELLERS…

1. Will start listing their homes leading to new inventory in September and early October.
2. New listings be gobbled up quickly, likely with multiple offers.
3. The market will become more competitive!