What’s Up with Real Estate?
(Published on - 8/3/2025 10:18:05 PM)
May marked the third month in a row that Case-Shiller's seasonally-adjusted national home price index declined month-over-month. On an unadjusted (real world) basis, home prices are still rising nationally, just at a much slower pace than normal for these spring/summer months. And in some markets (especially the Sun Belt and Mountain states), home prices are actually declining, albeit modestly. [Source: S&P JDI]
As expected, the Federal Reserve held its policy rate range steady at 4.25-4.50%. But unusually for the consensus-loving Fed, two voters (Christopher Waller and Michelle Bowman) dissented. They wanted a 25 basis point (0.25% = one quarter of a percentage point) cut instead. A day later, the PCE (inflation) report showed a modest INCREASE in the annual inflation rate. Not what we want to see. [Source: Federal Reserve, BLS]
Mortgage rates steady
According to Freddie Mac's weekly PMMS, average 30-year mortgage rates were largely unchanged week-over-week at 6.72%. Fed Chairman Jerome Powell's comments after the FOMC meeting were somewhat hawkish, suggesting that a rate cut at the September meeting was far from guaranteed, especially if tariffs appear to be reigniting inflation. [Source: Freddie Mac PMMS, Federal Reserve]
Local Market Trends
As of Friday, August 1, 2025
Local Market Trends (
/
) from Jul. to Aug. 2025.
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Scott and Caroline Doan Realtors®
(951) 541-3498
Realty Executives
28581 Old Town Front St. #100
Temecula, Ca. 92591
DRE#02248461
