September 19, 2023 | Driving It Home with ABoR's Housing Economist

The August housing stats (linked below) depicted a modest uptick in closed sales (+1% YoY) and a less considerable decline in the median sales price (-7% YoY) than in months prior. Active listings ticked up 12% YoY, while months of inventory increased to 3.8 months, indicative of greater supply in the market. Sales of lower-priced homes increased YoY, while sales of mid and higher-priced homes declined YoY. The effects of the rise in mortgage rates (the average for August measured 7.07%) have yet to fully materialize in the housing market.  This week, the Federal Reserve will meet and decide on a potential rate hike. While the Fed is unlikely to raise rates this meeting, the possibility of a rate hike in its November or December meetings lingers. The bond market continues to signal investor fears over the longer-term trajectory of rates, with the elevated (and inching higher) 10-year Treasury yield indicating that investors anticipate rates will remain higher for longer. For the time being, this means mortgage rates will remain elevated. *Links mentioned in this episode:* August Market Statistics | https://www.abor.com/marketstatistics Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2023/09/DIH-9-19-23.pdf *NEW* Read the Truth About Austin's Missing Housing Report: https://www.abor.com/thetruth Download the Buy Vs. Rent Index: https://www.abor.com/buyrentindex Access the One-Page Customizable Buy Vs. Rent Index Summary: https://www.abor.com/customizables Connect with us on socials: https://www.abor.com/socials Connect with Dr. Clare Losey on LinkedIn: https://www.linkedin.com/in/clare-losey