The National Association of Realtors (NAR) guidelines on how real estate professionals get paid for their services have changed. This results from a legal action settlement against them and reflection of other pending lawsuits. Realtor practice will have to be more transparent.

These "new rules" for members could upend the way Americans buy or sell their homes. Commission payment is a main point of the settlement. Compensation for services are negotiable and may be a percentage of the price, a flat fee or incentive arrangements.

Mortgage rates fell again this week due to expectations of a Fed rate cut. Rates are expected to continue their decline and while potential homebuyers are watching closely, a rebound in purchase activity remains elusive until further declines are seen.

Primary Mortgage Market Survey®

U.S. weekly averages as of 08/29/2024:

30-Yr Fixed Rate Mortgage 6.35%

15-Yr Fixed Rate Mortgage 5.51%

Source: Freddie Mac

CHICAGO (August 16, 2024) – Today, the National Association of Realtors® provides a final reminder to members, real estate professionals, and consumers that on August 17, 2024, the practice changes following NAR's Proposed Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions will be implemented across the country.

REALTOR® MLSs (those owned exclusively by one or more REALTOR® Associations) must implement the changes by August 17, 2024, to remain in compliance with NAR policy.

A home equity line of credit lets you borrow against your home's value to access cash as needed.

A home equity line of credit, or HELOC, is a second mortgage that gives you access to cash based on the value of your home. (It can also be a primary mortgage if you own your home outright.) You borrow against your equity, which is the home’s value minus the amount you owe on the primary mortgage. You can usually borrow up to 85% of your equity, though this varies by lender.

These practice changes will go into effect on August 17, 2024:

Things to know as a home buyer or seller:

If you are a buyer and your agent is using an MLS, you will need to sign a written agreement with your agent before touring a home so you understand exactly what services will be provided, and for how much.

Written agreements are required for both in-person and live virtual home tours.

You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.

To the relief of many, the Federal Housing Finance Agency (FHFA) has canceled its plan to change a mortgage fee for people with certain debt-to-income ratios.

After the substantial slowdown in growth last fall, home prices stabilized during the winter and began to modestly rise over the last few months. This indicates that while affordability remains a hurdle, homebuyers are getting used to current rates and continue to pursue homeownership.

Primary Mortgage Market Survey®
U.S. weekly averages as of 05/18/2023:

30-Year Fixed Rate Mortgage 6.39%
15-Year Fixed Rate Mortgage 5.75%

Source: Freddie Mac

Borrowing costs are lower even after the Fed’s hike this week—but a bigger issue looms large. While the outlook for borrowing costs bodes well for prospective home buyers this spring, the lack of inventory does not.

Buying or selling your home is one of the biggest and most important decisions you’ll make in your lifetime. You need someone you can trust by your side, who is looking out for your best interests and is willing to put all their knowledge and experience to work for you.

Not all real estate agents are the same. There are many real estate agents out there, and their experience and dedication to their profession and clients varies widely.