It is a good time to jump into the market if you are a buyer. Lots has happened the last few weeks to make it home buying more attractive. Rates are down 1 percent since late spring, in July the median sales price dropped nationally for the first time in two years and inventory is up. This "sexy" news really is also practical news with home buyers gaining purchasing power.
Redfin just had a great illustration about how rate drops impact purchasing power which I will use:
A homebuyer on a $3,000 monthly budget can afford a $466,000 home with a 6.35% mortgage rate, roughly the daily average on August 5. That buyer has gained nearly $30,000 in purchasing power over the last month alone: They could have purchased a $437,250 home with a 7.15% rate, roughly the daily average at the start of July. And that same buyer has gained more than $40,000 in purchasing power since April, when mortgage rates hit a five-month high of about 7.5%.
This is real savings and combined with the reduction in prices we saw on about 19 percent of listings last month buyers can feel good about purchasing.