Weekly Real Estate Monitor for Feb. 5-9

For the past eight weeks, the 30-year fixed mortgage rate has shown consistent stability, while the 10-year treasury yield has recently risen to 4.1%, sparking speculation that the 30-year mortgage rate might follow suit. Rates increased to 7.04% at the beginning of the week but adjusting below 7%, to 6.97% as of yesterday. Homebuyers are finding some relief in the steady mortgage market. Still, affordability issues continue as housing inventory is tight and a potential challenge for the upcoming spring season. While this benefits homeowners by increasing their equity, it poses difficulties for buyers in finding affordable homes within their budgets. 

 

Pending home sales in December 2023 surged, with an 8.3% increase from November and a 1.3% rise from the previous year, marking the highest level since July of that year. This substantial growth was attributed to a significant drop in mortgage rates, with the average 30-year-fixed mortgage rate falling to 6.82% in December from 7.44% in November, the most substantial monthly decline since 2008. The softer mortgage rates have enticed more buyers into the market, leading to increased activity. The housing market is anticipated to gain further momentum as spring approaches, as long as mortgage rates remain stable

 

The number of property listings has surpassed the previous year's figures. 

This week marked a 3.7% increase from the corresponding week last year and a significant 19.5% jump from the preceding week, indicating a potentially active market for February. 

 

Despite being 11.6% lower than the previous year, showings are gathering pace, with showings recording an 8.2% increase from last week.

 

For the second consecutive week, the median listing price is steady at 5.4% above the price during the same week last year.