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The real estate market continues to evolve this summer with key shifts in construction, mortgage activity, and buyer-seller dynamics. Whether you're a homebuyer, seller, or industry pro, here’s what you need to know to stay ahead this week:
🛠️ Homebuilders Tap the Brakes — But for a Good Reason
Residential construction spending saw a slight slowdown in May compared to the previous month. But this isn’t necessarily bad news. Builders are now prioritizing completing existing projects to keep up with increasing buyer demand, rather than starting new ones. The focus has shifted from breaking ground to delivering finished homes — a smart move as more buyers enter the market.
💼 Mortgage Activity Is Heating Up
According to the Mortgage Bankers Association (MBA), mortgage applications rose for the second consecutive week. Even more promising, purchase applications are now 16% higher than this time last year — a clear signal that consumer confidence is gaining momentum.
With mortgage rates hovering below last year’s levels and more homes hitting the market, many buyers are finding renewed opportunity.
📉 Sellers Are Slashing Prices — Buyer Leverage Is Growing
Realtor.com notes that inventory is finally starting to rise — and with it, buyer power. More than 1 in 5 home sellers are cutting their list prices, which is contributing to a more balanced playing field.
Expect slower price growth and increased room for negotiation in many markets across the country. If you've been waiting for the right moment to buy, this shift may work in your favor.
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📊 Big Picture: Wall Street Sets Records, Jobs Market Stays Strong
The broader economy is showing signs of resilience. The S&P 500 and Nasdaq both hit all-time highs at the end of June, with strong business spending and solid job growth leading the charge.
June saw 147,000 new jobs added, and unemployment ticked down to 4.1%. Consumer confidence is further boosted by trade deals progressing with Vietnam and renewed negotiations with Canada and the EU.
💡 Did You Know?
According to the National Association of Realtors, nearly half of all home sales now involve senior buyers. Baby boomers make up a commanding 42% of recent home purchases, while millennial buyers have dropped to 29%, down from 38% a year ago.
📅 What to Watch This Week
Here’s what economists and market watchers are focused on:
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Mortgage Applications: Will we see a third straight week of gains?
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Jobless Claims: Expected to remain stable and far from recession territory.
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Treasury Budget: Forecasts point to a declining federal deficit in June.
📉 Fed Rate Watch: A September Cut?
With a stronger-than-expected jobs report, analysts now anticipate the Federal Reserve could cut interest rates in September and hold steady in October. This could further improve affordability for buyers, especially if mortgage rates follow suit.
| FOMC Meeting Date | Expected Rate | Probability of Change |
|---|---|---|
| July 30 | 4.25% - 4.50% | 4.7% |
| September 17 | 4.00% - 4.25% (cut) | 67.4% |
| October 29 | 4.00% - 4.25% | 45.6% |
🧘♂️ Business Tip of the Week
Create a shutdown ritual at the end of your workday. Whether it's writing out tomorrow’s to-do list, closing your laptop, or taking a walk — this small habit can help reduce stress, set boundaries, and improve productivity long-term.
Looking for more updates like this? Whether you’re house-hunting, investing, or just keeping an eye on the market, staying informed helps you make better decisions
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