Good Monday Morning and Happy Labor Day!
Inflation numbers continue to plague our national economy and this is certainly having an effect on the housing market. Fears of the Fed taking measures to slow inflation with higher interest rates has slowed consumer confidence and this along with mortgage interest rates rising again, home sales have slowed both locally and nationally.
If you are considering the purchase of a home, don't let this current market scare you off. If you look at the 30 year average of 8 1/2% for mortgage interest rates, today's rates still look very favorable. The inventory of homes on the market is much more favorable than it was back in the Spring and home buyers no longer have to get into bidding wars with other buyers. The truth is that for home buyers, right now is a much more favorable market that what they faced earlier this year. The time for buyers to jump in is now. It may be a while before we see a market for home buyers like this again. Here is a recent report on the national housing market from "Realtor.com."
The 30-year fixed-rate mortgage averaged 5.66% as of Sept. 1, according to data released Thursday by Freddie Mac. That’s up 11 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%.
The 30-year is at the highest level since June, when rates hit 5.81% the week of June 23.
The average rate on the 15-year fixed-rate mortgage rose 13 basis points over the past week to 4.98%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.51%, up 15 basis points from the prior week.
“The market’s renewed perception of a more aggressive monetary-policy stance has driven mortgage rates up to almost double what they were a year ago,” Sam Khater, chief economist at Freddie Mac, said in a statement.
And the increase in rates comes at a “particularly vulnerable time for the housing market,” he added, “as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price growth deceleration.”
So far, buyers — spooked by higher rates and economic uncertainty — continue to pull back, based on mortgage application data.
Meanwhile, sellers are having a much more difficult time. According to Realtor.com’s August report, listings are spending more days on the market, and are also taking price cuts. The number of homes available for sale is also increasing.
Have An Awesome Week!
Stay Healthy! Stay Safe! Remain Positive! Trust in God!
THIS WEEKS HOT HOME LISTING!
Beautifully maintained home on large lot in desirable South Eugene! Fabulous fenced yard with two she/ he sheds(both have power). Rooms are spacious and the home is move in ready! You won't want to miss this!...