Good Monday Morning!
The Real Estate market in the Eugene and Springfield area remains interesting. Typically, when there is a downturn in the economy and mortgage interest rates rise, home prices come down. So far, that has not really been the situation in our local market. Statistically, home prices have remained steady and even in some price ranges and areas they have increased. The other odd situation is that in many situations, we are continuiung to see bidding wars. One home that sold last week went $83,000 over asking price. Another home had six offers and also went well above asking price. This is not the norm for a market like the one we currently find ourselves in. Much of the problem is lack of inventory. In many price ranges and areas, there just are not many homes on the market. I am again telling anyone thinking about selling a home to act now. In most situations, this is a great market for anyone selling an home. I will also warn home sellers to the fact that what you see right now, will not last for long. Here is a recent article from "Realtor.com", talking about the current mortgage loan market.
The numbers: Mortgage rates are up for the fourth week in a row.
The 30-year fixed mortgage rate hit 7.1%, up from 6.94% on Wednesday, according to the latest data of mortgage brokers released Thursday by Mortgage News Daily.
Mortgage News Daily says its index is driven by real-time changes in actual lender rate sheets.
Separately, the 30-year fixed-rate mortgage averaged 6.65% as of March 2, up 15 basis points from the previous week, Freddie Mac also said Thursday.
The 30-year was last at this level in mid-November 2022. One basis point is equal to one hundredth of a percentage point.
Last week, the 30-year was at 6.5%. Last year, the 30-year was averaging at 3.76%, Freddie Mac said.
The average rate on the 15-year mortgage rose to 5.89%, from 5.76% the previous week. The 15-year was at 3.01% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.94% as of Thursday morning.
Mortgage demand fell in the latest week as rates rose, according to a separate report by the Mortgage Bankers Association. Purchase applications have dropped to the lowest level in 28 years.
What Freddie Mac said: “Given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward 7%,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“Now that rates are moving up, affordability is hindered and making it difficult for potential buyers to act, particularly for repeat buyers with existing mortgages at less than half of current rates,” he added.
Market reaction: The yield on the 10-year Treasury note was trading above 4% during the afternoon trading session on Thursday.
Have An Awesome Week!
Stay Healthy! Stay Safe! Remain Positive! Trust in God!
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