1. Mortgage Rate Trends: In May 2024, mortgage rates remained a significant focus. Rates fluctuated, with the average rate for a 30-year fixed home loan surpassing 7% at certain points, affecting buyer decisions. However, towards the end of the month, rates fell below 7% for the first time in over a month, offering some relief to potential homebuyers and influencing market dynamics. 2. Housing Inventory and Sales: The spring housing market saw an increase in inventory, with available homes reaching levels not seen since 2021. Despite this, pending home sales plunged to their lowest level in four years due to the high mortgage rates, which deterred many buyers. This trend reflects the complex interplay between increased home availability and the challenging affordability conditions brought on by higher borrowing costs. 3. Home Prices: Nationally, home prices hit a new record high, with a 6.5% annual increase as of March 2024. This growth was led by specific cities that showed particularly strong performance. The rise in prices continues to pose challenges for affordability, even as more homes become available on the market. 4. Regional Insights:
  • Phoenix: Phoenix remains a significant growth market, particularly in the data center sector, with substantial inventory under construction.
  • California: Various regions in California showed dynamic trends with notable price and sales increases in areas like Los Angeles and the Central Coast.
5. Market Outlook: Despite the current high rates, there is optimism that mortgage rates may decline by the end of 2025. This potential decrease could lead to more favorable conditions for buyers and a more active market. For more detailed insights, you can refer to the full articles on Realtor.com and JLL.