Welcome to our final Weekly Mortgage Update of July! We are wrapping up another great month which we have many of you to thank for that! Thanks for allowing us to help you, for connecting us to your family, friends, and clients to assist with their mortgage questions and needs.



ALSO, before we get to the update, reminder that we have a FANTASTIC network of trusted, locally owned, and operated resources to connect you to in order to help at your house. Whether it’s a septic issue, to fix your roof with a real roofer (not one of those random calls and texts), electrical, you can reach out to us to help connect you to someone to help so that you don’t get lost with all the different options, give us a call! Now, back to the update. This week, rates bounced around and worsened some, but we’re hoping for improvement in the coming weeks. The rates are shown just above the trivia question. If you have questions about how these rates apply to your situation, let's talk. But as usual, there is LOTS GOING ON, SO LET’S GET STARTED!

CRAZY STORY


If you’re coming home from the beach in the next few weeks, and you’re going thru TSA our editors wanted to give you a few tips: Peanut butter counts as a liquid, you CAN evidently fly with a LIVE lobster or fish, BUT gang, you CANNOT bring a cannonball from Fort Morgan in your carry-on.



A TSA officer at the Gulf Shores airport got quite the surprise when he spotted something odd on the X-ray screen. Wrapped in paper towels, the mystery objects looked like they could be explosives. Turns out they were five cannonballs, stolen from Fort Morgan, an historic fort in Baldwin County that has stood watch over the coast since the early 1800s. The passenger said she had no idea how they ended up in her bag, and honestly, who would have noticed that her bag weighed an extra 40 or 50 pounds!?!? Turns out her 17-year-old grandchild grabbed them from a storage area at the fort as a souvenir, probably thinking nobody would notice a few old cannonballs going missing. No charges were filed, and the cannonballs made their way back home safe and sound, ready to guard the fort for another few centuries, but this could have gone VERY differently. No word on how long the 17-year-old is grounded. Our editors will try to reach out and confirm. Click below to read more. 

REAL ESTATE TO BEHOLD



If the artificial intelligence REALLY gets away from us, maybe we’ll all need a fortress of solitude. That said, our first property this week is perfect for Superman, AI protection, or your next prepper client. This decommissioned Atlas missile silo on 18.2 acres in rural Kansas is listed for $1.6 million. Built during the Cold War, this one-of-a-kind property combines history, privacy, and endless possibilities for the right buyer.



The underground complex includes a 2,500 square foot Launch Control Center, a massive 52 foot wide by 182-foot-deep missile silo, rural water, 200-amp electrical service, fiber internet availability, a cell signal repeater, humidity control system, and separate sewer systems for both the underground and above ground structures. Outside, the fully fenced property features panoramic 20-mile views, abundant wildlife, RV hookups, and even room for solar or wind power. Whether you're building the ultimate bunker or one of the world's most unusual Airbnb’s, this one is a blast (Dad Joke 1: Update 0). Click below to see more.

If you've ever dreamed of owning a piece of American history, our next featured home is about as patriotic as it gets. Mulberry Fields, a breathtaking 490-acre waterfront estate in Maryland, is listed for $20 million and dates back to 1755, before the Declaration of Independence was even signed.

Legend has it that some of America's Founding Fathers once gathered here. The property features the last surviving Georgian manor house in St. Mary's County, a mile long cedar lined entrance, nearly a mile of private Potomac River shoreline, six bedrooms, seven fireplaces, and original architectural details that have been preserved for nearly 270 years.

From Independence Day celebrations to congressional gatherings, it's hard to imagine a home that captures the spirit of America better than this one… maybe a cherry tree cut down in the back for some extra Washingtonian authenticity. Click to see more, below.

For our last home, a new realtor by the name of Tony Montana said, "SAY HELLO TO MY LITTLE LISTING!" Priced at $237 million, this iconic Key Biscayne waterfront estate served as the unforgettable mansion of Tony Montana in the 1983 classic Scarface, making it one of the most recognizable homes in movie history, BUT it also served as President Nixon’s winter White House (talk about an odd pairing!)

Set on 2.38 acres with an incredible 862 feet of Biscayne Bay frontage, the estate offers more than 11,500 square feet of living space, five bedrooms, soaring 24-foot ceilings, a dramatic glass elevator, a piano shaped saltwater pool, and a private marina that can accommodate yachts up to 200 feet. The property has plenty of room for use as a world leaders’ retreat OR for the next Hollywood legendary blockbuster.

Whether you're a movie buff, a boating enthusiast, or simply shopping for your next $237 million home, this one is impossible to forget. As Tony said, “In this country, you gotta make the money first. Then when you get the money, you get the power,” then you get the listing. Click below to see more!

THE ECONOMY AND REAL ESTATE

Our PALS at the Fed made news this week, though not the kind we were all hoping for. Rather than raising or cutting rates, the Federal Reserve voted to hold rates steady, keeping it in a range between 3.5% and 3.75%. The vote was NOT unanimous, with THREE voting members (Hammack, Logan, and Kashkari) voting that the Fed should raise their rates by 0.25%. In their individual statements today, the three dissenters primarily pointed toward inflation remaining above the Fed's target for more than five years now and more recent concerns over inflation given energy price volatility.

This was also a big moment for new Fed Chair Kevin Warsh, who has been pushing the Fed to stop giving the markets so many hints about what is coming next. True to that approach, this week's statement stayed short and gave little away about the Fed's next move.

We had a call-in question, asking “what does this mean for mortgages?” Well caller, not much changed overnight, but the split vote shows, even with the recent new leadership at the helm of the Fed, there is continuing debate happening behind the scenes about where rates go from here. For now, steady is the word of the week, and we will keep watching closely so you do not have to. Bottom line, hope it all comes out in the Warsh. (Dad Jokes 2: Federal Reserve 0.)

Nationally, prices hit their best level since last summer, and Alabama residents appreciated it as well (Dad Jokes 3: Update 0). Prices are still climbing slowly overall, up less than 1% for ten months running, but the trend is picking up steam as the number of homes for sale stops growing as fast as it had been. Chicago led the way among big cities, with prices up over 6% from a year ago, while a few markets like Denver and Miami actually saw prices dip slightly.

Back to Alabama, our market had a strong second quarter too. Home sales climbed each month from April through June, and the median sales price jumped to $282,139 in June, up more than 13% from a year earlier. Buyers also had more homes to pick from, with active listings growing every month of the quarter. Even foreclosures, while up slightly from last year, stayed well below pre pandemic levels.

Bottom line, both the nation and our state are seeing steady price growth paired with a little more breathing room for buyers. That is a good combination heading into the second half of the year.

Speaking of housing, we wanted to close this week with something inspired from our friends at Keeping Current Matters. It touches on something we're seeing here in the Birmingham market too. It was titled Home Price Growth Slowed Down. That May Be Changing. Keep reading the summary from KCM below.

After more than a year of headlines warning that home prices are going to crash, the latest data shows price growth may be starting to pick back up again. And depending on whether you're buying or selling, that shift means something different for you.

The Numbers May Be Starting To Turn

For the past couple of years, home price growth has been moderating, cooling from around 7% in mid-2024, according to Redfin (see graph below). But look at the right side of that graph. The pace of growth appears to have hit its low point and started to turn.

A couple months of data doesn't guarantee a lasting trend, but other signs point the same direction. Fewer markets are seeing prices decline. According to ResiClub and Zillow, about 36% of the 300 largest housing markets had falling prices as of the middle of last year. Now, only 23% are seeing those mild dips (see graph below). Fewer markets falling means more markets are rising again.

Forecasts back this up too. Experts project home prices will rise about 2.3% nationally this year, which means growth needs to pick up a bit in the second half of 2026.

But Remember, Real Estate Is Local

While national prices may be ticking back up, that doesn't mean it's happening in your neighborhood. National numbers are really just an average of hundreds of local markets, some climbing faster, others still cooling. Not long ago, major metros were split about 50/50 between rising and falling prices. Now that balance is tipping positive. Just last month, more than half of major metros saw prices go up, according to Redfin (see graph below).

As Selma Hepp, Chief Economist at Cotality, explains:

". . . local markets continue to tell very different stories. Annual home price growth has changed little since the start of the year, but some markets, especially those supported by strong job and income growth in the West and more affordable Midwest markets, have seen notable acceleration in price gains."

What This Means for You

Home price headlines can be confusing since they don't always tell the full picture. Lean on an agent to understand what's happening in your local market and what the early signs say for where prices may go from here.

If you're buying, slower price growth has worked in your favor, giving you more room to negotiate and plan your budget. If growth is picking up in your area, buying now may mean paying less than you would later this year.

If you own a home, you've been gaining equity all along, even while growth moderated, and those gains could speed up if growth keeps picking up. Lawrence Yun, Chief Economist at the National Association of Realtors, projects the typical homeowner will gain roughly $16,000 in housing wealth this year. If you're thinking about selling, this shift is a good early sign, though the market is still pretty balanced and buyer friendly in a lot of areas right now.

Bottom Line



Home price growth slowed way down, and now it's showing early signs of picking back up.

Whether you're buying or selling, let's connect so you can see exactly what prices are doing in our local market and what that means for your plans.

RATES:

Pricing and rates remain erratic and volatile. Confirm rates & pricing directly with your loan officer.

Check out the trivia below and remember, there is a drawing to enter to win a gift card. This is your chance to enter for a chance to win the gift card awarded every other month. This trivia question is for the July & August drawing/card.

TRIVIA QUESTION

As we said recently, our trivia questions are going to come from the phenomenal podcast Acquired, which has become our chief editor's favorite current listen. If you're not familiar with it, Acquired takes a deep dive into the fascinating stories behind some of the world's most successful companies, brands, and organizations. The episodes often run three to six hours, but don't let that scare you... they're packed with incredible history, business lessons, and plenty of "I had no idea!" moments. This week's question comes from their episode on the NFL.

Today, NFL franchises sell for $8-10 billion, making them some of the most valuable sports teams in the world. Hard to believe that when the league began in 1920, one future Hall of Fame owner purchased his franchise for ... well come to think of it, How much did an original NFL franchise cost?

A. $10

B. $100

C. $500

D. $1,000

E. $5,000

Click here to EMAIL ME YOUR ANSWER.

**Email your answer to me to have your name entered in a drawing for a gift card at the beginning of even months and YES you can go back and answer previous weeks’ questions if you have not answered them already AND if we have not unveiled the answer yet***