Do NOT split your mortgage payment in half without calling first.

Tri-Cities Market Pulse

June closed out with the region's most broad-based strength in months. The regional median sale price hit $308,750, up 4.7% year-over-year, with sales up 3.8% for the month and running 8.3% ahead of last year through the first half. This time the gains weren't lopsided — Johnson City and Kingsport both posted meaningful price and volume growth together, rather than one city carrying the numbers. (Full June wrap-up at donfenley.com →)

Underneath that, sellers are still testing the market's ceiling — asking prices are holding steady going in, but buyers are pushing back on the way to the closing table, gaining real leverage in negotiations even as the region stays technically in seller's-market territory. (Don Fenley's breakdown at donfenley.com →)

On rates: mortgage rates eased again this week, with the 30-year fixed averaging 6.64% and the 15-year at 6.18%, per Mortgage News Daily — the lowest level in just over a week on softer inflation data. If a buyer tells you they're waiting for a bigger drop before making a move, the talking point that holds up: home prices historically don't wait for rates to fall — they tend to keep climbing. If rates do drop meaningfully, expect a wave of buyers to come off the sidelines at the same time, the way we saw during the COVID years, which can push prices up fast and create real competition. A buyer could end up with a lower rate but a higher price and a similar or bigger monthly payment, plus a tougher negotiating environment. Buying now, at today's price and rate, and refinancing later if rates drop is often the stronger position.

Source: NETAR data reported by Don Fenley, CoreData (donfenley.com); Mortgage News Daily rate index. Market analysis by Sam Timlick, mortgage loan officer in Johnson City, TN.

Mortgage Strategy: Do NOT Split Your Mortgage Payment in Half

Here's one worth passing along to any client who mentions they're thinking about paying their mortgage every two weeks instead of once a month. Not every servicer applies a split payment the way people expect — and getting it wrong doesn't look like a mistake in the moment.

I'm working with a client right now who split their payment on their own, without checking with their servicer first. The second half kept posting after the due date, and the servicer counted those months as late — every time. They had no idea. The money was going out, the balance was going down, nothing looked wrong. They just found out the hard way: they're ready to move up to their next home now, and because of how recent those lates are, they're likely looking at another 6 to 12 months before they can qualify to buy again.