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Sellers Starting To Cut Home Prices, Research Shows

By Dan Green

Home sellers are starting to reduce list prices, a trend which typically continues through Thanksgiving week; today’s mortgage rates and 5-day interest rate trends; and, mortgage rates have dropped for 3 straight weeks, says Freddie Mac

MLS Home Price Reductions Beginning To Rise

Home sellers more likely to drop prices over next 4 months - Growella
Home sellers more likely to drop prices over next 4 months

Homes listed for sale may soon drop in price.

New data from Altos Research shows the U.S. housing market entering its repeating, summer-to-fall cycle of slowing sales and falling prices.

34 percent of sellers reduced their home’s list price in June, a three-tick jump from the month prior and a reading that’s in keeping with recent trends.

The real estate research company’s data shows that home sellers begin to reduce home prices more aggressively beginning in late-Spring and that the number of price reduction increase through the summer and fall months.

Home price reductions typically peak in late-November.

For today’s home buyers, the data from Altos Research offers leverage in negotiation. Sellers with homes for sale may feel pressure to match a neighbor’s price reductions; or, may worry that a buyer will never come along.

Real estate is a transactional business. It’s also an emotional one. And, even when markets are strong, sellers can get nervous about the future.

Buyers can use this information to make a better offer.

Not all homes will drop in price between now and the start of 2019; and, the Altos Research data isn’t a reason to delay a home purchase. However, it highlights trends in pricing that buyers can use to their advantage.

A local real estate agent can help you identify homes likely to drop in price. You’ll save on your monthly payment, and you’ll get to make a smaller down payment, too.

Today’s Mortgage Rates & Interest Rate Trends

Current Mortgage Rates for July 06, 2018 - Growella
Current Mortgage Rates for July 06, 2018

Mortgage rates are improved today.

This morning, the Bureau of Labor Statistics released its June Non-Farm Payrolls report. Mortgage markets are responding favorably.

Rates for fixed-rate mortgage and ARMs are lower across all loan types. They’re down for niche programs, too, including the 100% LTV Doctor Program and loans for AirBnb hosts.

Mortgage rate quotes are not one-size-fits-all so the quote you get from a lender won’t be the same quote your family member or neighbor receives.

Lenders use more than a dozen factors to set your mortgage rate.

Your loan size, your credit score, and the amount you borrow affect your quote; as well as the state in which the home is located, the number of units in the home, and the type of mortgage used to finance it.

Talk to two or more lenders when you’re shopping to find your preferred combination of rates, fees, and service. Shoppers who shop are shoppers who save.

Click here to get a free mortgage rate quote now.

Get Today’s Mortgage Rates

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How Much Does A Mortgage Cost?

The 5-year costs of carrying a mortgage - Growella
The 5-year costs of carrying a mortgage

It’s less expensive to own a home today.

According to Freddie Mac and its most recent Primary Mortgage Market Survey, the cost of paying on a mortgage is lower this week as compared to recent weeks, giving a boost to home affordability.

The government-backed group reports that mortgage rates are down for the third straight week this week; its survey uses data from more than 100 U.S. mortgage lenders.

When mortgage rates drop, the long-term costs of homeownership drop, too.

At today’s mortgage rates, for every hundred thousand dollars borrowed, homeowners with 30-year fixed rate mortgages will pay approximately thirty-thousand five hundred dollars over the next 60 months.

Depending on your loan type, the amount you repay may be different.

Using this week’s rates, as published by Freddie Mac, here’s what homeowners can expect to pay between now and July 2023:

There are reasons for today’s mortgage shoppers to finance with a 5-year ARM, just as there are reasons to choose the 15-year or the 30-year fixed-rate mortgage instead.

Consumers should consider personal preferences, long-term plans, and household budgets. Also, whether you plan to move within the next decade. A mortgage lender can help you with the details.

And, remember: you don’t need 20 percent down to buy a house.

Mortgage rates change all the time and, today, they’re lower as compared to recent weeks. It’s an excellent time to comparison shop rates and see for what you qualify.

Written by Dan Green

Dan Green is a personal finance expert and the founder of Growella. His expertise has been cited by The Wall Street, NPR, and CNBC; and, his advice has helped millions of people make better choices with their money. Dan hosts the mortgage news show "The Mortgage Minute-and-a-Half" three times weekly on YouTube.

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