POST TAGSMortgage News
Blog posted On August 02, 2022
Black Knight analytics is bringing good news to home buyers. Home price gains are officially slowing down, according to the data firm.
In June, the annual pace of home price appreciation slowed by two percentage points. As demand wanes and housing supply expands, more home sellers have been forced to make price cuts. They’re also not seeing the excessive over-asking-price offers from a year ago. What does this mean for buyers?
“The [home price] slowdown was broad-based among the top 50 markets at the metro level, with some areas experiencing even more pronounced cooling,” said Ben Graboske, president of Black Knight Data & Analytics. “In fact, 25% of major U.S. markets saw [price] growth slow by three percentage points in June, with four decelerating by four or more points in that month alone.” This marks the sharpest cooling of national home prices ever recorded.
Additionally, mortgage rates have been trending significantly lower since the middle of June. Several signs in the economy could be pointing to a slowdown coming soon. The GDP estimate for the Q2 of 2022 was negative for the second consecutive month. The Job Openings and Labor Turnover Survey (JOLTs) fell below expectations in June – with the number of job openings and voluntary quits decreasing. The employment report coming out this Friday will be very important as well. Negative GDP data combined with negative employment data are two strong signs of an economic slowdown. While this is challenging for several markets and millions of Americans, it does offer a slight silver lining for people waiting for mortgage rates to cool. Typically, when the economy slows, rates trend lower.
Here’s how can prepare:
If you’re interested in learning more about what’s to come in the market, let us know.