Mortgage Rates Drop to Lowest Level in 10 Months, Upping Purchasing Power in a Buyer-Friendly Market
A buyer on that budget can afford a $458,750 home with today's mortgage rate, compared to the $439,000 home they could have bought with May's peak.
To look at affordability another way, the monthly mortgage payment on the median-priced U.S. home, which goes for roughly $447,000, is $2,862 with today's average rate. In mid-May, when rates were sitting above 7%, the monthly payment would have been $2,983, over $100 more.
Mortgage rates fell over the weekend following a weaker-than-expected July jobs report. The U.S. added fewer jobs than anticipated, and the unemployment rate ticked up, which pushed up the chances of the Fed cutting interest rates in September.
'This dip in mortgage rates gives house hunters a window of opportunity to buy before summer ends,' said Daryl Fairweather, Redfin's chief economist. 'While housing costs are still fairly high, the recent decline in rates boosts purchasing power and improves overall homebuying conditions. Combined with the surplus of homes for sale on the market, serious buyers may want to jump in sooner rather than later.'
House hunters should take note that there are hundreds of thousands more home sellers than buyers in the market, giving many prospective buyers an opportunity to negotiate home prices down and ask for concessions. But the gap between sellers and buyers is starting to shrink as new listings decline, with would-be sellers opting to stay put instead of listing their home in a buyer's market.
To view the full report, including a chart, please visit:
About Redfin
Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin's clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.
You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Emerson Electric Co (EMR) Q3 2025 Earnings Call Highlights: Strong Profitability Amid Market ...
Revenue: Underlying sales growth of 3% for the third quarter. Adjusted Earnings Per Share (EPS): $1.52, a 6% increase year-over-year. Free Cash Flow: $970 million, with a margin of 21.3%. Adjusted Segment EBITDA Margin: 27.1%, impacted by 40 basis points due to tariffs. Backlog: Increased to $7.6 billion, with a book-to-bill ratio of 1%. Price Contribution: 2.5 points in the quarter. Fourth Quarter Guidance: Expected underlying sales growth of 5% to 6% and adjusted EPS between $1.58 and $1.62. Full Year Guidance: Underlying sales expected to be up approximately 3.5%, with adjusted EPS of approximately $6 per share. Warning! GuruFocus has detected 5 Warning Signs with GERN. Release Date: August 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Emerson Electric Co (NYSE:EMR) reported strong profitability with an adjusted earnings per share of $1.52, meeting the top end of their guidance. The company announced a strategic collaboration with TotalEnergies, enhancing their enterprise operations platform and showcasing their innovation in automation. Emerson's industrial software annual contract value (ACV) grew double digits, ending the quarter at $1.5 billion. The Test & Measurement segment showed significant recovery, with orders up 16%, indicating strong market demand. Emerson's free cash flow generation was better than expected, resulting in a margin of 21.3%. Negative Points Sales growth was impacted by easing surcharges, resulting in underlying sales growth of only 3%, which fell short of guidance. The Intelligent Devices segment faced profitability challenges due to tariffs and unexpected foreign exchange impacts. Europe's sales were down 7%, indicating regional challenges in market performance. The discrete automation market, particularly in automotive and packaging in Western Europe and China, remains relatively depressed. The tariff environment remains dynamic, with Emerson's annualized gross incremental tariff impact now estimated at $210 million, affecting profitability. Q & A Highlights Q: Can you explain the margin dynamics for Intelligent Devices, considering the impact of tariffs and FX? A: The Intelligent Devices segment experienced a margin decline due to tariffs and unexpected FX impacts. When excluding these factors, margins were up by 20 basis points. Tariffs primarily affected this segment, unlike Control Systems and Software, which had minimal tariff exposure. (Surendralal Karsanbhai, CEO) Q: What is driving the recovery in the Test & Measurement segment, and is it broad-based? A: The recovery in Test & Measurement is broad-based across all segments and regions. The portfolio business, aerospace defense, semiconductor, and automotive sectors are all contributing positively. Asia, particularly China, is leading the recovery, followed by North America and Europe. (Surendralal Karsanbhai, CEO; Ram Krishnan, COO) Q: How did orders trend throughout the quarter, and what is the outlook for software growth next year? A: Orders remained consistent with a mid-single-digit exit rate, with some fluctuations due to timing. For software, AspenTech's ACV is expected to continue growing in high single to double digits, with consistent growth in the Process segment. (Surendralal Karsanbhai, CEO; Ram Krishnan, COO) Q: What is the outlook for the power vertical, and can growth remain elevated? A: The power vertical is expected to sustain high teens growth over the next couple of years, driven by opportunities in generation and transmission distribution. The focus has shifted to project pursuit and market expansion, supported by strong customer relationships. (Surendralal Karsanbhai, CEO; Ram Krishnan, COO) Q: Can you provide more details on the Control Systems and Software segment's performance and outlook? A: The segment saw mid-single-digit growth, with some lumpiness due to project timing and ASC 606 recognition. AspenTech's ACV growth remains strong, and the systems business continues to perform well. Overall, the segment is expected to achieve high-end growth within the 4% to 7% range. (Michael Baughman, CFO; Ram Krishnan, COO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 minutes ago
- Yahoo
Parsons Corp (PSN) Q2 2025 Earnings Call Highlights: Strategic Wins and Growth Amid Challenges
Total Revenue: $1.6 billion, decreased 5% year-over-year; excluding confidential contract, grew 13% total and 8% organic. Adjusted EBITDA: $149 million, margin expanded by 40 basis points to 9.4%. Cash Flow from Operations: $160 million for the quarter; $574 million on a trailing 12-month basis. Free Cash Flow Conversion: 151% for the quarter; 125% on a trailing 12-month basis. Book-to-Bill Ratio: 1.0 times for the quarter and trailing 12 months. Critical Infrastructure Revenue Growth: Increased by 14%, with 8% organic growth. Federal Solutions Revenue Growth: Excluding confidential contract, increased 8% total and 8% organic. SG&A Expenses: Increased 13% year-over-year. Net Debt Leverage Ratio: 1.5 times at the end of the second quarter. Backlog: $8.9 billion, a 1% increase year-over-year; funded backlog at $6.2 billion, a 14% increase. Share Repurchase: 219,000 shares repurchased at an average price of $68.56, totaling $15 million. Updated Revenue Guidance: $6.48 billion to $6.68 billion for 2025. Updated Adjusted EBITDA Guidance: $595 million to $635 million for 2025. Updated Operating Cash Flow Guidance: $400 million to $440 million for 2025. Warning! GuruFocus has detected 1 Warning Sign with PSN. Release Date: August 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Parsons Corp (NYSE:PSN) reported a 13% total revenue growth and 8% organic growth, excluding the impact of a confidential contract. The company achieved a record adjusted EBITDA margin of 9.4% for the second quarter, with a 40 basis point expansion. Parsons Corp (NYSE:PSN) increased its full-year revenue, adjusted EBITDA, and cash flow guidance, reflecting strong second-quarter performance and strategic acquisitions. The company secured significant contract wins, including a $176 million contract with the U.S. Army Corps of Engineers and a $138 million cyber contract with the Defense Threat Reduction Agency. Parsons Corp (NYSE:PSN) has a robust backlog of nearly $9 billion, with 70% funded, and a $55 billion pipeline, positioning it for continued growth. Negative Points Total revenue decreased by 5% from the prior year period, primarily due to the impact of a confidential contract. Federal Solutions segment revenue decreased by 19% year-over-year, with a 20% decline on an organic basis. The adjusted EBITDA for Federal Solutions decreased by 35%, with a margin decline of 210 basis points to 8.3%. The company experienced increased SG&A expenses, driven by recent acquisitions and investments in bid and proposal activities. Parsons Corp (NYSE:PSN) faces uncertainties in the contracting environment, which could impact the expected growth in the Federal Solutions segment. Q & A Highlights Q: Could you discuss the opportunities in front of the company with respect to the Golden Dome and the FAA procurement? How are you pursuing these, and what is the optimal way for the FAA procurement to proceed from your perspective? A: Carey Smith, Chairperson, President, and CEO, explained that Parsons is well-positioned for both the FAA and Golden Dome opportunities. For the FAA, Parsons has a strong team and partnership with IBM, aiming to provide a resilient system. The FAA program has $12.5 billion in funding, with a request for solicitation expected soon. For Golden Dome, Parsons has been supporting the Missile Defense Agency for decades and has a current contract vehicle worth $2.2 billion, with $1 billion remaining. Both programs are expected to receive more funding in the future. Q: What is your expectation for the calendar 3Q, which is seasonally the industry's strongest from a book-to-bill perspective? A: Carey Smith anticipates a more robust Q3, traditionally the strongest quarter for the federal business. Parsons expects a 1.0 book-to-bill ratio for the full year for both Critical Infrastructure and Federal Solutions, with Q3 expected to be a stronger quarter. Q: How might the One Big Beautiful Bill impact your infrastructure side, particularly regarding state and local budgets? A: Carey Smith noted that the bill aligns with bipartisan priorities, shifting focus from soft infrastructure to hard infrastructure like roads, highways, and airports, where Parsons is well-aligned. The Surface Transportation Reauthorization Bill is expected to provide additional funding, benefiting Parsons. Q: How do you think about the organic growth outlook, and what are the contributors to the second half ramp-up? A: Carey Smith stated that excluding the confidential contract, Parsons expects 18% organic growth in the second half, with 13% in Critical Infrastructure and over 20% in Federal Solutions. The growth is largely based on work already won, with significant contributions from projects in North America and the Middle East. Q: How has the hiring environment been, and what is your ability to move people within the company to high-priority areas? A: Carey Smith reported a strong hiring environment and retention, with the best retention since 2020. Parsons has a great ability to hire due to its mission focus and culture. The company can move people around to different projects and regions, providing new experiences and development opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
10 minutes ago
- Yahoo
Dynatrace Inc (DT) Q1 2026 Earnings Call Highlights: Strong Start with 19% Revenue Growth and ...
Subscription Revenue Growth: 19% increase. Annual Recurring Revenue (ARR): $1.82 billion, representing 16% growth. Pretax Free Cash Flow: 33% of revenue on a trailing 12-month basis. Net New ARR: $51 million, up 13% year over year. Average ARR per Customer: Nearly $450,000. Gross Retention Rate: Mid-90s percentage. Net Retention Rate (NRR): 111%. Total Revenue: $477 million, growing 19%. Non-GAAP Operating Margin: 30%. Non-GAAP Net Income: $126 million or $0.42 per diluted share. Free Cash Flow: $262 million in the first quarter. Share Repurchase: 905,000 shares for $45 million at an average share price of just under $50. Q2 Revenue Guidance: $484 million to $489 million. Q2 Subscription Revenue Guidance: $464 million to $469 million. Q2 Non-GAAP EPS Guidance: $0.40 to $0.41 per diluted share. Release Date: August 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Dynatrace Inc (NYSE:DT) reported a strong start to fiscal 2026 with subscription revenue growing 19% and ARR increasing by 16%. The company achieved a pretax free cash flow of 33% of revenue on a trailing 12-month basis, demonstrating strong profitability. Dynatrace Inc (NYSE:DT) closed 12 seven-figure ACV deals in the quarter, indicating robust expansion activity. The strategic enterprise pipeline grew nearly 50% year over year, with significant contributions from deals greater than $1 million. The company continues to see strong traction with its partner ecosystem, particularly with Global System Integrators (GSIs), which contributed significantly to large deals. Negative Points Despite strong performance, Dynatrace Inc (NYSE:DT) maintained a cautious outlook and did not raise its constant currency ARR guidance, citing early fiscal year timing and large deal variability. The company noted that large deals come with increased timing variability and longer duration to close, which could impact future revenue recognition. New logo additions were lighter than expected, indicating potential challenges in acquiring new customers. The company faces a modest headwind to margins due to the weakening dollar, as a significant portion of its expenses are euro-weighted. There is ongoing uncertainty in the macro and geopolitical environment, which could impact future performance. Q & A Highlights Q: Why didn't Dynatrace raise the constant currency guidance despite strong performance in DPS, logs, and ODC? A: James Benson, CFO, explained that while Q1 was an exceptional start, it's still early in the fiscal year with only 20% completed. The company maintains a prudent guide due to the growing pipeline of large deals, which have more uncertainty around close timing. They prefer to wait for more progress in Q2 before updating the guidance. Q: Can you elaborate on the consolidation of log vendors and the market's appetite for these deals? A: Rick McConnell, CEO, stated that customers are moving towards integrated solutions for observability, which is why isolated log solutions are less effective. Dynatrace offers an integrated platform that provides better outcomes at lower costs, attracting customers looking for comprehensive solutions. Q: How are the go-to-market changes impacting expansion activities and large deals? A: James Benson, CFO, noted that the changes in sales incentive models and segmentation have led to strong expansion activities, particularly with large customers. The pipeline is heavily weighted towards large expansions, driven by strategic accounts and higher propensity to spend customers. Q: How does the ODC revenue recognition change impact other metrics like NRR? A: James Benson, CFO, clarified that the ODC revenue recognition change only affects revenue and does not impact ARR or NRR. The focus remains on driving consumption through the Dynatrace Platform Subscription model, which leads to higher NRR and renewal rates. Q: What is the impact of AI adoption on Dynatrace's business? A: Rick McConnell, CEO, highlighted that AI adoption is accelerating, with more discussions around AI in observability use cases. Dynatrace is focusing on agentic AI, predictive operations, and integrating AI capabilities into their platform to drive autonomous systems, which is expected to be a critical evolution in the industry. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
