The housing market may finally be entering a transitional phase. While summer sales have been sluggish so far, there are indications that activity could pick up by the end of the season.
Mortgage rates have fallen to their lowest levels in approximately 15 months, and the influx of much-needed resale inventory is providing buyers with more options.
Additionally, home shoppers can take heart in the continued decline of the median price for new homes, which has now dipped below the median price for resale homes, even as builders persist in offering buyer incentives.
Experts contend that the housing market will only regain momentum when mortgage rates decrease sufficiently to alleviate affordability challenges. This would also encourage homeowners who are currently locked into low rates to sell, thereby increasing inventory to meet growing demand.
