Happy August! Let’s start with the GREAT news: interest rates have dropped to their lowest point in more than a year. The national average for a 30-year fixed rate mortgage has come down to 6.125%, down from 6.75% last week. This equates to a $200/mo reduction in principal and interest! (And if you’re the aggressive type, rates for a 15-year mortgage are in the low 5’s.) And now, even more great news: experts are predicting as many as three additional mortgage drops from now into September. SO–now really is a great time to begin home shopping, as great mortgage lenders will be sure to lock in your rate at the perfect time. 

Now, speaking of shopping for homes, there’s more change in the real estate industry as a whole. Effective August 15, there can no longer be any mention of commission in MLS. This is a trickle down of the federal commission lawsuit settled in March. Here’s what it means for normal buyers and sellers:

• Buyers will now HAVE to sign a contract with their buyers agent before they’re shown any houses. 

• The buyer’s agency contract is nothing new. It’s something Realtors often have gotten pushback on, as some buyers like to “date” agents and not commit to using one–which ultimately leaves a trail of brokenhearted Realtors who have spent their evenings and weekends showing houses, only to get ghosted when the buyer calls the agent on the sign and buys a house with them. 

• This new iteration of the buyer’s agency contract, however, is a contract between the buyers and their chosen agent that clearly stipulates how that agent will be paid. 

• Some sellers may still be willing to pay the buyer’s agent, but remember: agents will no longer know the commission rates offered for each house, and it’s no longer guaranteed that sellers will pay commission.

• Again, clearly: new National Association of Realtors rules that homebuyers must be willing and able to pay their Realtor.

So, buyers are entering into a contractual agreement with their chosen agent before they begin looking for houses. Buyers, make sure you choose an agent that is experienced, that you gel with (this process can sometimes take a few months), and that has a proven track record of hard work and excellent representation. 

On a completely unrelated note, I personally sold nearly $2.5 million in real estate in July alone, successfully seeing five transactions through to the closing table. I’m a full-time, full-service agent with more than a dozen years of experience, and I would be honored to be chosen as your trusted Realtor to help you navigate the ever-changing tides of real estate.