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- Mortgage rates stayed high despite rate cuts, attracting cash-heavy investors to the housing market.
- Despite values dropping in some areas, those selling are still raking in gains.
- Cities like San Jose and Denver are seeing investor interest, while Oakland and Providence declined.
Despite the central bank cutting interest rates, mortgage rates haven’t followed suit. The average 30-year term remains near 6.21% .
Still, there was an uptick in buyers during the second quarter, specifically those who are investors , according to the latest data available from Redfin. The share of investors who purchased property rose 3.4% from a year earlier. They were likely attracted by an opportunity to meet the growing demand of renters who face barriers to homeownership that a lack of affordability and elevated mortgage rates have brought on, read the note by Lily Katz.
Home prices nationwide, including those that were distressed sales , increased by 4.3% in July from a year ago, according to CoreLogic. An investor purchased one out of every six properties sold within the second quarter and one of every four low-priced homes for a whopping $43 billion worth of real estate, Katz wrote.