I wanted to walk you through what Realtor.com Research is showing us about where things stand heading into late July. The research indicates that new home sales made a modest improvement in June, though May's numbers got revised upward and were still relatively soft overall. So we're seeing some movement in the right direction, but nothing dramatic yet.
On the mortgage side, there's something important to understand about the existing market. According to Realtor.com Research, more than half of all outstanding mortgages are locked in at rates of four percent or lower. That's a significant piece of the puzzle because it affects how many people are willing to list their homes and what inventory looks like out there.
The mortgage market itself has been moving a bit. Freddie Mac reported that the thirty-year rate ticked up slightly during the most recent week, so we're watching those numbers carefully as they fluctuate.
When you look at new construction activity, the picture is mixed, which I think is pretty typical right now. Building permits declined in June, but completions actually moved up a little, so builders are juggling different pressures depending on what part of their business you're looking at.
What I am seeing locally in the Bay Area and Fremont is that this kind of mixed momentum aligns with what we're experiencing here with inventory levels and buyer activity. The mortgage rates holding where they are means a lot of existing homeowners aren't moving, which continues to keep supply tight. For buyers, it means competition remains real, and for sellers, it means you still have leverage if you're thinking about making a move.
