Caught up in the precipitous situation in Afghanistan and lackluster retail sales, Treasury yields drifted lower. As a result, rates fell too with both the 30-year and 15-year fixed rate mortgages 6 basis points lower at 2.93% and 2.38% respectively.
More houses in the United States have been selling for over listing price according to a recent Zillow study. In Q1 2020, 1.1% of sold homes went for over 30% above asking price. Now, in Q2, that amount has increased to 1.7%. However, as inventory shows small signs of growing, this should (especially when paired with the decreased competition of the fall and winter months) slow down housing price appreciation. In fact, the housing market has already begun showing signs of reduced vigor. For example, Home Depot and Lowe’s shares both fell as fewer homeowners attempted renovations in Q2. Additionally, home builder confidence sunk to 13 month lows as prospective buyer traffic dropped five points. Meanwhile, and fortunately for investors, the price of rent shows no signs of dropping as June saw a 7.5% yearly increase, the biggest increase since 2005.