Housing Market and Economic News Update: August 09, 2024

Thompson Kane is dedicated to helping our community stay on top of the ever-changing landscape of the housing market and the economy. Let’s dive into the most recent developments:

This Week’s Housing Market News

• Home Prices: According to Realtor.com, home sellers reduced prices in July at the fastest rate seen in the past two years, with 18.9% of listings experiencing price cuts, a significant jump from 3.4% in the same month last year.
• Inventory Rises: ICE data shows that July’s housing inventory rose by 37% compared to last year, with 1 in 5 major markets now reaching or exceeding pre-pandemic inventory levels.
• A Refi Uptick: Mortgage activity saw a mixed trend, with refinance applications climbing 16% for the week and 59% year-over-year, while purchase applications increased by 1% week-over-week but remained 11% lower than the same period last year.

This Week’s Economic Highlights

• Labor Market: The labor market showed signs of cooling in July, with just 114,000 new jobs added. The unemployment rate ticked up to 4.3%, marking its highest level since October 2021.
• Recession Fears Kept At Bay: Despite concerns, global trade indicators, such as shipping giant Maersk, suggest the U.S. is not heading toward a recession, as freight demand remains strong. 
• Interest Rates: Financial markets are now expecting the Federal Reserve to begin lowering interest rates, with a possible half-point reduction in September and a total reduction of one percentage point by the end of the year..

Keeping you up-to-date with the constantly changing housing market

At Thompson Kane, we understand the importance of staying ahead in a rapidly changing market. Our goal is to equip you with the latest insights to help you make informed decisions and confidently navigate your business and financial endeavors. For more frequent updates, follow the Thompson Kane Newsfeed and connect with us on Facebook for bi-weekly news and valuable content. Your success is our priority, and we’re here to keep you informed every step of the way.