Feds Make Biggest Mortgage Point Cut Since 2008

Feds Make Biggest Mortgage Point Cut Since 2008! from Talis Team Real Estate on Vimeo.

At their August 1st meeting the Feds lowered the interest rate by 25 basis points – the first of such move in 10 years! At the same time, the average 30-year interest rate dropped to the lowest level since November of 2016 according to Freddie Mac mortgage rate survey. What does this mean for the real estate markets here in the Silicon Valley?

July shows a mix of indicators.  The number of new listings decreased by 14.9 percent comparing with July of the last year and the number of closed sales decreased by 4.2 percent leading to 5.6 percent increase in the number of homes available for sale. The prices, however, are holding steady – July median home sale price is only 2.4 percent lower than in July of last year.

The number of new contracts, the leading indicator of the upcoming market activity, increased by 8.2 percent as buyers are taking advantage of the improved lending environment. Overall the market is moving further toward a state of balance.  

If you are thinking about buying, selling or investing in real estate, let’s talks.  Let us help you take advantage of this dynamic market situation.
Best Regards,

Elena & Michael Talis

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