Tag: #CNBC

Three Misconceptions About the Market

It’s fact vs. fiction.

Some buyers, sellers, and commentators are a little uncertain right now about the housing market. And that’s led to some dramatic headlines. If you’re thinking about buying a home, this may be making you feel a little uneasy about your decision.

A recent study by CNBC asked homebuyers what they’re most worried about, and three themes kept coming up again and again:

  • Mortgage rates
  • The number of homes for sale
  • Home prices

You should know that a lot of what you may be hearing is based more on misconceptions than facts. So, let’s break it down and separate fact from fiction.

Misconception #1:“I’ll Just Wait, Because Mortgage Rates Are Going To Fall Dramatically”

One idea going around on social is that mortgage rates are going to drop dramatically soon. So, it’s better to wait to buy.

But is thatreallywhat’s expected?

While mortgage rates have come down a bit in the last few weeks, forecasts don’t show a major drop ahead.The most likely scenario is that rates stay somewhere in the low 6% range this year.

And that’s not a big change from where rates are now (see graph below):

Of course, this depends on where inflation and the economy go from here. But, based on what we know today, waiting for a big drop in rates may not work out the way some people hope. AsU.S. Newsexplains:

“Mortgage rates aren’t expected to change much over the next several quarters . . .”

Not to mention, even with rates where they are today, it’s alreadymore affordable than a year ago. So, even if they don’t change much, it’s still better than it was.

Misconception #2:“There Are Too Many Homes for Sale Right Now”

You’ve probably heard inventory is up. And nationally, it is. The number of homes for sale is 8% higher than this time last year. But that’s not a bad thing. In fact, it’s one of the reasons buyers have a bit morebreathing room right now.

The problem is the headlines are making something good, sound bad. They’re focusing on how this is the most inventory we’ve had since 2019 or how many homes builders are building. And that can make it sound like the number of homes for sale is rising too far, too fast.

But that’s not what the bigger picture shows.

DatafromRealtor.comshows that, even though inventory is up compared to last year, it’s still nearly 14% lower than it was during the last normal housing market (2017-2019):

On Cape Cod, inventory is down 21% comparing this March to last.

Misconception #3:“Home Prices Are About to Crash”

You’ve probably seen this one, too. The confusion is coming from the fact that some areas are experiencing price declines. And influencers are running with that and saying prices are crashing. But that’s not the reality.

Most areas are seeing prices rise, not fall. On Cape, the median sales price for a single-family home is up almost 2% YTD comparing the first three months of this year with the same time period in 2025.

Why are prices up?

  • Many homeowners aren’t selling because they don’t want to give up the low mortgage rate they locked in a few years ago. And that’s keeping a lid on how much inventory can grow.
  • Since inventory is still below pre-pandemic norms, there aren’t enough homes for sale to cause a price crash.
  • And even in markets with more inventory, some sellers are choosing to pull their homes off the market instead of cutting prices.

Bottom Line

Online posts are going to make things sound worse than they are. If you want a true, data-bound look at what’s really happening in today’s market, please talk with us. You can always find us at 508-388-1994 (Mari and Hank) or 781-423-8662

We can separate fact from fiction.

Mari, Hank, and Colleen

Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.

Mortgage Rates Just Saw Their Biggest Drop in a Year

If you’ve been feeling stuck, this is the break you’ve been waiting for.

You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way.

On Friday, September 5th, the average 30-year fixed mortgage rate fell to the lowest since October 2024. It was the biggest one-day decline in over a year.

What Sparked the Drop?

According to Mortgage News Daily, this was a reaction to the August jobs report, which was weaker than expected for a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result.

Basically, we’re seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down.

Why Buyers Should Pay Attention Now

But this isn’t just about one day of headlines or one report. It’s about what the drop means for you.

This recent change saves you money when you buy a home. The chart below shows you an example of what a monthly mortgage payment (principal and interest) would be at 7% (where mortgage rates were in May) versus where rates roughly are now:

Compared to just 4 months ago, your future monthly payment would be almost $200 less per month. That’s close to $2,400 a year in savings.

Locally, Cape Cod Five has announced 30 and 15 year rates below 6%.

How Long Will It Last?

That really depends on where the economy and inflation go from here. Rates could drop lower, or they could inch up slightly. 

So, make sure you stay in touch with us and your lender. We’ll be keeping a close eye on inflation indicators, job market updates, and reactions to upcoming Fed policy to gauge where mortgage rates may go from here.

But for now, focus on this. While no one can say for sure where rates are headed, the fact that rates broke out of their months-long rut is a good thing. If you’ve been feeling stuck, this could make the start of a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, says:

“Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.” 

And that’s gives you more reason to hope than you’ve had in quite some time.

Bottom Line

This is the shift you’ve been waiting for.

Mortgage rates just saw their biggest decline in over a year. And if rates stay near this level, it could make a home you couldn’t afford just a few months ago feel possible again.

With inventory increasing, is this finally the time for you to make the change you know you need to whether buying, selling or both?

Questions? Concerns? You can find us at 508-388-1994 or msennott@todayrealestate.com. We’re here to help.

Mari and Hank

Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.