Just over a week ago, the Fed made a decision to lower the rate at their "Discount Window", allowing banking institutions another method of providing assurance of liquidity to their clients, and also helping many institutions continue to fund home loans. Due to the Fed's action, the past week was somewhat calm in the financial world...at least calmer than has been seen in awhile. Both the Stock market and the Bond markets moved higher, and conforming home loan rates remained stable to very slightly improved. There is more hope than anticipated, so take that gloomy gus face and give me a big smile.
Further, some decent news arrived on the housing front via the New Home Sales report, showing a 2.8% increase in sales for July, and an upward revision to June's numbers as well. Unsold new home inventory continued to decline for the fourth consecutive month, falling by 1.0% to 533,000 homes. This inventory represents a 7.5 month supply, down from the 7.7 month supply in June. Additionally, the median new home sales prices edged higher to $239,500. Not bad news overall, particularly considering the current landscape in the lending industry.
Here in Columbia Maryland the median home sales are $355,000. The market is stabilizing.
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