As expected, the debt ceiling was resolved and mortgage rates have now gotten a little reprieve.  Inventory remains low, and that's despite the higher rates we saw over 7% the last few weeks.  It would have made sense for inventory to increase as active homes would sit longer, but neither has really been the case.  Buyers have been active despite the rates, and even during the recent holiday weekend.  This goes back to my newsletter last week, it's a case of the devil we know vs. the devil we don't.  On a podcast yesterday I heard a great word to describe the devil we don't know in this scenario, "Shadow Buyers".  Pent up demand, a young demographic of buyers, literally waiting in the shadows for rates to come back down.  This will create a highly competitive buyers market.  The only hope will be if the traditional seller (who is a move up buyer) will be comfortable enough with the rates drop to list their house and start the search of their own.  The market can't keep relying on life event sellers.  We are getting closer to July 4th, which is typically when we see a seasonal inventory decline.  I will watch closely as we are already near all-time lows.
Remember, if the numbers make sense, buy rather than rent.  If the number don't pencil out, wait until they do.  Keep it simple.

What are you seeing or hearing? I'd love to know paul@guiderealestate.com