Mortgage Rates Drop, Optimism Grows
📊 Market Momentum: Encouraging Signs with Caution Ahead
Last week’s economic data brought a breath of cautious optimism to the real estate landscape. Consumer prices rose more slowly than expected in May, driven by declining energy costs, which helped offset increases in food and shelter. This milder inflation reading helped push mortgage rates to their lowest point in a month, offering a brief window of relief for homebuyers.
Small business optimism also saw its first rebound in five months, reaching levels above the long-term average. Eased trade tensions and rising sales expectations have lifted business owner confidence, though some uncertainty remains with tariffs and policy debates still in play.
From a household standpoint, consumer confidence is quietly improving. The likelihood of job loss declined, while expectations for future earnings and household financial health saw modest gains.
📉 Foreclosures dipped slightly month-over-month, thanks to a still-resilient labor market and strong home values. California ranked 13th in foreclosure activity nationally, with Lake, Plumas, and Shasta counties seeing the highest rates.
📈 While indicators are trending positively, the market remains sensitive to global unrest and economic shifts. For REALTORS®, buyers, and sellers, the message is clear: Stay alert, stay informed, and be ready to move when opportunity knocks.
Source: California Association of REALTORS®