Housing Inventory Trends Explained: Real Estate Market Update

The Texas Real Estate & Finance Podcast with Mike Mills

Wondering where the housing market is headed this summer? Mike Mills offers an in-depth look at housing inventory trends and mortgage rates that could shape your next move. Don't miss out on these key insights for realtors!

Episode Overview

Mike Mills is back with a detailed analysis of "Housing Inventory Trends" and the latest mortgage rate updates in this episode. Realtors will learn about the current state of the housing market, with insights into national and local inventory trends. Mike also dives into the implications of the recent NAR commission lawsuits, offering guidance on how these changes might affect real estate transactions. Key questions answered include: Where are mortgage rates now, and where are they headed? What do the housing inventory numbers mean for the market? And how will the NAR settlements influence real estate practices? This episode is a must-listen for realtors seeking to stay ahead in the market.

Key Takeaways

Mortgage Rates Update

Mike Mills provides an update on current mortgage rates, noting that the average 30-year fixed conventional mortgage is around 7.125%, while FHA loans are about 6.625%. He explains how these rates have shifted due to recent bond market rallies and speculates on potential future trends based on upcoming economic data and Fed meetings.

National and Local Housing Inventory Trends

The episode highlights how housing inventory has increased across the U.S. and in Texas, with more homes on the market now than at any time since August 2020. Mike discusses how this trend could affect affordability and sales, especially if mortgage rates begin to decline.

Impact of NAR Commission Lawsuits

Mike delves into the recent NAR commission lawsuits and their outcomes, discussing how changes to MLS rules and commission structures might influence real estate practices. He explains the differing responses from MLS organizations across the country and what these changes mean for realtors and their clients.

Economic Indicators and Real Estate Market

Economic indicators such as GDP growth, unemployment rates, and job data are examined for their impact on the real estate market. Mike points out that a slowing economy might lead to lower mortgage rates, which could boost housing demand despite current high inventory levels.

Future Real Estate Market Predictions

Mike offers predictions for the future of the real estate market, suggesting that if mortgage rates drop to around 6.5%, we might see a significant increase in home sales. He emphasizes the importance of staying informed about these trends to make strategic decisions in the real estate business.

Time Stamped Summary

0:08 - 0:36 - Introduction

• Host Mike Mills welcomes listeners to the Texas Real Estate and Finance Podcast market update for June 4th.
• Thanks listeners for tuning in and supporting the show.

0:37 - 1:12 - Personal Message and Call to Action

• Mike thanks loyal listeners and introduces the term "treffers" for fans of the podcast.
• Encourages listeners to share the episode and reach out with tough loan scenarios.

1:13 - 1:40 - Introduction to Today's Topics

• Mike outlines the topics for today: quick news hits, mortgage interest rate updates, May housing inventory data, and updates on the NAR commission lawsuits.

1:41 - 2:58 - Quick News Hits

• Updates on Dallas Mavericks advancing to the NBA finals and Dallas Stars' season end.
• Discussion of GameStop stock surge and a glitch in the New York Stock Exchange affecting Berkshire Hathaway stock.
• Bank of America's new target price for NVIDIA and the listing of the Home Alone house.

2:59 - 5:03 - Mortgage Rates Update

• Overview of recent bond market rallies and their effect on mortgage rates.
• Current rates: 30-year fixed conventional mortgage at 7.125%, FHA loan at 6.625%, 15-year conventional at 6.625%, and jumbo rate at 7.4%.
• Upcoming economic data reports and their potential impact on mortgage rates.

5:04 - 7:14 - Housing Inventory Trends

• Analysis of national and local housing inventory trends, with an increase in unsold inventory since August 2020.
• Positive news for affordability with more homes on the market and a slight increase in pending home sales.
• Discussion on the potential impact of mortgage rate trends on housing inventory.

7:15 - 9:47 - Economic Indicators and Real Estate Market

• Examination of economic indicators like GDP growth, unemployment rates, and job data.
• Predictions for the future of mortgage rates and their impact on the real estate market.
• Discussion on how economic trends affect housing inventory and affordability.

9:48 - 14:18 - NAR Commission Lawsuits and Settlements

• Updates on the NAR commission settlements and the response from various MLS organizations.
• Discussion on the implications of these changes for real estate practices and transactions.
• Overview of new policies and rules being implemented by different MLS organizations.

14:19 - 16:29 - NAR Membership Trends

• Overview of NAR membership trends and the potential impact of new rule changes on membership numbers.
• Discussion on how the changes from the Sitzer-Burnett case might influence the number of realtors in the industry.
• Predictions for future NAR membership trends based on current economic and market conditions.

16:30 - 18:06 - New Websites Addressing Commission Advertising

• Introduction to new websites like ListingSplit and NestHook that aim to address commission advertising issues.
• Discussion on how these platforms operate and their compliance with NAR rules.
• Overview of the features and benefits of these new tools for realtors.

18:07 - 19:00 - Conclusion and Call to Action

• Mike wraps up the episode with a summary of key points.
• Encourages listeners to provide feedback and stay tuned for future episodes.
• Final thoughts on being proactive and informed in the real estate market.

Guest Bio

Mike Mills

Mike Mills is a seasoned mortgage banker with Geneva Financial, specializing in solving tough loan scenarios and helping clients achieve their dream of homeownership. As the engaging host of the Texas Real Estate and Finance Podcast, Mike breaks down complex real estate and finance topics with clarity and a touch of humor. With a deep understanding of the Texas real estate market, Mike provides valuable insights and actionable advice to realtors, homebuyers, and investors.

Resources

• Geneva Financial: https://www.millsteammortgage.com
• NMLS Consumer Access: https://www.nmlsconsumeraccess.com
• Mortgage News Daily: https://www.mortgagenewsdaily.com
• ListingSplit: https://www.listingsplit.com
• NestHook: https://www.nesthook.com
• Mike Mills on Facebook: https://www.facebook.com/mike.mills.3110
• Mike Mills on LinkedIn: https://www.linkedin.com/in/mike-mills-49a09621
• Mike Mills on Instagram: https://www.instagram.com/mikemillsmortgage
• Mike Mills on Twitter: https://twitter.com/mikemillsMTG
• Mike Mills on TikTok: https://www.tiktok.com/@mikemillsmortgage

• Mike Mills Mortgage
• The Texas Real Estate & FInance Podcast - Check out all past episodes, and extra content here!
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