Listing prices are just suggestions

Plus, where will mortgage rates go?

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  January 28, 2023 | Issue #77

Good morning! This week we’re discussing the changing housing market, mortgage rates and the good news for renters. This issue of Money Moves was written by Aly J. Yale.   We’re not in 2021 anymore Money; Getty Images With every new report, it gets clearer: The housing market is changing — and buyers are gaining ground. Take the latest from Zillow, for example. Apparently, the majority of homes are now selling for *below* listing price. It’s the first time that’s been true since July 2020, when “the pandemic’s homebuying mania first started,” as reporter Mary Ellen Cagnassola so aptly put it. But it doesn’t stop there. Last week also saw reports of home values falling, home supply rising and, potentially the best one yet, a much-needed dip in mortgage rates. It’s good news for those who have been pushed out of the market over the last few years, but does it mean conditions are perfect? Definitely not. (In fact, only 21% of consumers say it’s a good time to buy a house). Still, it’s a glimmer of hope — a sign of some balance finally coming into view, just as Redfin deputy chief economist Taylor Marr predicted. “The last few years [we’ve] ping-ponged between a really aggressive market and a cooling market,” she told Leslie Cook back in December. “With more economic stability, that really could bring more overall balance to the market.” For more: For the First Time Since Summer 2020, a Majority of Homes Are Selling Below List Price Co-buying can be risky: The Pros and Cons of Buying a House With Your Friends   Where will mortgage rates go? Getty Images Despite the improvements in the housing market, it’s still more affordable to rent a place than to buy one. Analysis from ATTOM Data Solutions shows that the average rent on a three-bedroom house is cheaper than the typical mortgage payment in 95% of  U.S. counties. This is a stark about-face from a year ago, when buying was more affordable than renting in 60% of housing markets. It’s also a welcome change for renters, who — in recent years, at least — felt locked in, facing both rising rents and impossibly steep home prices. Now, it seems, they finally have some choice in the matter. The rent vs. buy dilemma: Renting Is Cheaper Than Buying a Home in Most of the U.S. Right Now Shop ‘til you drop: Shopping Around for a Mortgage Is More Important Than Ever. Here's How to Do It   Where will mortgage rates go? Mortgage rates have been pretty volatile in recent months. Last week, they clocked in at 6.13%, which is still high compared to last year’s January 3.22% low, but down from the 7% high in November. Ideally, that downward trend will continue, but with the Federal Reserve set to meet next week, it’s all up in the air. Last year, average mortgage rates increased after most Fed meetings. There are always exceptions, but based on history, the first meeting of 2023 could mean another hike is in the cards. Here’s a look at how mortgage rates correlated to the Fed meetings across last year.   Handy home design hacks for sellers Getty Images Sellers are facing tougher conditions than they’ve become accustomed to these last few years. And while slashing prices is one way to catch buyers’ eyes, it’s not the only strategy for hard-up homeowners looking to make a profit — or at least break even. Some DIY home decor hacks can help, too. Open shelving, for instance, is in high demand with today’s buyers. But installing all new cabinetry? That’s not in the budget for many. Fortunately, there’s a hack for that. The same goes for dated vanities, wall-to-wall carpeting and not-so-great countertops. In all these cases, there’s a quick and affordable hack that can get the job done, according to Domino writer Raven McMillan. Need ideas for ramping up your listing’s look? Here are the affordable strategies that can help.   Happy hunting, P.S. Spot a weird or unique home listing? Share it with me on Twitter, where I’m @alyjwriter, or via email at alyjyale@gmail.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page.   Money’s Essential Home Buying Resources: Winter 2023 On the hunt? Check out Money’s Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates. Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips. Key question: How much house can I afford?   This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. Privacy Policy • Advertise With Us • We're Hiring! 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