The back-to-school process has begun and parents are focused on getting their kids ready for school, or are trying to deal with the new school schedules and how that puts pressure on their housing situation. Back to school is hectic, but the challenges of the possible functional obsolescence of their homes can be a bigger issue.

Parents with children starting school, starting different schools, sharing bedrooms, the issues with bathrooms, and even the physical location of their house may now be best served by moving into a home than functions more effectively for the entire family. Despite higher home prices and interest rates, the value of addition space, bedrooms/bathrooms, and even location can be well worth the price! Ask anyone that has kids and only one bathroom on a school day!

Inflation data shows inflation has come down a little, but still over 8%, which is well beyond acceptable, and puts people in a position to be losing money every day as the higher inflation consumes more than their income has increased. The pain is real, and it will linger well into next year. The good news is the bond market was happy with the rise in inflation and even 8% is better than 9% so there is that 

Home prices continue to rise, but the rate has slowly started to retreat from all time high levels. Inventory is improving in some parts of the country, and we are seeing the return of the first-time buyer, FHA, VA, and USDA borrowers who have been kicked to the curb by sellers and their agents to look for offers over asking, all cash deals, or those using conventional loans only. As the market calms down, don’t expect prices to drop, just to appreciate a little slower.

For those sitting on the sidelines waiting for home prices to crash, you may have a very long wait. We see a 23-year LOW in mortgage delinquencies and a 40 year low in foreclosures. If people have massive amounts of equity in their homes, they will just sell instead of walking away.

Refinances still remain about 1/3 of all loans. Despite all the past refinances, about half of all mortgages in place are 4% and higher, which is quite surprising!

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