The biggest news for St. Louis and national real estate this week is coming from the mortgage industry. Mortgage interest rates have dropped below 4% for a conventional 30 year fixed-rate loan. While the vast majority of loan applications are for refinances, we are seeing a pick up in purchase activity as a result.

With inventory holding steady and pending sales increasing slightly, the data found on the Nolting Report points to good news this week. In fact, our months of inventory average number has now dipped into the 6 – 7 range for the first time in a long while. While this number still indicates a buyer’s market, it is awfully close to a balanced market. I’m continuing to expect a healthy fall sales season as buyers who waited out the summer’s political and economic troubles (debt ceiling debate, downgrade of the economy by Standard and Poor’s) finally decide to get back in the market.

Within the last 7 days, Active Listings have dropped from 3993 to 3931 as many listing agreements expired on the last day of August.  We also saw a large number of end of the month closings, resulting in a our Pending number dropping from 1011 to 937.  This week should show a healthy beginning of the fall market in St. Louis as continued low interest rates push those who have been sitting on the sidelines onto the playing field.

In this week’s St. Louis Real Estate update, there has been a slight decline in the number of active listings and month of inventory. This could be a direct result of people getting back into the swing of “school time” for their children putting the real estate market on the back burner. Although, with interest rates still at record lows there should be an increase in houses being sold for the next coming months. If you are a seller in this economy the good news is that the sellers that are motivated to sell there home have taken their property off the market. Therefore, giving those motivated sellers more of an advantage to selling their home.

This week’s slide in the number of Pending Contracts in St. Louis is  accompanied by a reduction in the number of ACTIVE listings.  In fact,  from a statistical standpoint, your home continues to have the same  statistical likelihood of being selected by the buyer pool — fewer  buyers have fewer homes to choose from.  Typical expectations for the  2nd half of August — showings tend to be on the slow side as families  focus on getting their kids back to school.  After Labor Day, we start  to see a pick up as families begin to focus on moving prior to the  holidays.  Of course, the highest quality buyer — the one who NEEDS to  find something — is always out there regardless of the time of year.

This week’s slide in the number of Pending Contracts in St. Louis is accompanied by a reduction in the number of ACTIVE listings.  In fact, from a statistical standpoint, your home continues to have the same statistical likelihood of being selected by the buyer pool — fewer buyers have fewer homes to choose from.  Typical expectations for the 2nd half of August — showings tend to be on the slow side as families focus on getting their kids back to school.  After Labor Day, we start to see a pick up as families begin to focus on moving prior to the holidays.  Of course, the highest quality buyer — the one who NEEDS to find something — is always out there regardless of the time of year.

According to the Associated Press in Washington DC the Standard & Poor’s Ratings Services on Monday downgraded the credit ratings of Fannie Mae and Freddie Mac and other agencies linked to long-term U.S debt.

The agency also lowered the ratings for: farm lenders; long-term U.S. government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options. All the downgrades were from AAA to AA+, reflecting the same downgrade S&P made of long-term U.S. government debt on Friday.

The downgrades of the US credit rating from a AAA to AA+ means that the collective pool of risk in the United States is viewed as slightly riskier than it was in the past. The Federal debt will be repriced to match this higher risk with higher interest rates.

Monday’s downgrades of the mortgage giants Fannie and Freddie reflected their “direct reliance” on the U.S. government, S&P said.

Fannie and Freddie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans worth more than $5 trillion. As part of a nationalized system, they account for nearly all new mortgage loans. Their downgrade might force anyone looking to buy a home to pay higher mortgage rates.

Neither have commented on whether or not the credit rating from AAA to AA+ will effect there interest rates, but it is something to watch out for in the near future for first time home buyers. Still, mortgage rates will likely stay low and might  hit new record lows in the next few weeks. Debt issued by the nationalized  mortgage-finance companies is still an attractive option for skittish traders  looking for relatively safe investments.

Many commercial banks also are loaded down with  Fannie and Freddie debt, which could prompt them to raise more money and  constrain new lending to consumers and businesses. That could mean tougher  lending requirements for would-be buyers. In a bear market like today, it is imperative to have great representation. That is why at the Russell Nolting Group, Powered by Keller Williams, we study the St. Louis real estate market day in and day out to have to best knowledge of how to sell your home for the best price, and find the house you’ve always dreamed of. Call Russell at 314-677-6560.

The St. Louis real estate market took an expected hit last week.  Concerns about the financial stability of our country, back-to-school seasonal issues, and continued heat-dome weather contributed to reduced showings, offers, and contracts.  The good news is all over the media:  Interest rates continue to be at record-breaking lows!  Buyers will choose homes that are aggressively priced and move-in ready. For any information about your next home, please call Russell Nolting at 314-677-6560

Here is the updated St. Louis Residential Real Estate Market Overview for August 1, 2011. After a couple of weeks of increases in number of contracts written, this week we saw a significant reduction in the “Pending (Last 30 Days)” number. I don’t think we can ignore the impact of multiple 100+ degree days last week. The fact is, showings (and therefore offers/contracts) have decreased significantly these past couple weeks. Inventory continues to come on the market. Recent closings have driven our “Months of Inventory” number down significantly to 8.39 months. We continue to be a buyer’s market. Aggressively priced homes are receiving the most attention and are selling quickly. Russell Nolting is a dedicated listing specialist in the St. Louis area, specializing in residential and luxury real estate. For any additional information on your next home in the St. Louis area, do not hesitate to call Russell at 314-677-6560.

This week’s updated St. Louis Residential Real Estate Total Market Overview!! After a couple of weeks of increases in number of contracts written, this week we saw a significant reduction in the “Pending (Last 30 Days)” number.  I don’t think we can ignore the impact of multiple 100+ degree days last week.  The fact is, showings (and therefore offers/contracts) have decreased significantly these past couple weeks.  Inventory continues to come on the market.  Recent closings have driven our “Months of Inventory” number down significantly to 8.39 months.  We continue to be a buyer’s market.  Aggressively priced homes are receiving the most attention and are selling quickly.  For any information regarding your next home, please call Russell Nolting at 314-677-6560.