October 26, 2023
For the seventh week in a row, mortgage rates continued to climb toward eight percent, resulting in the longest consecutive rise since the Spring of 2022. Rates have risen two full percentage points in 2023 alone and, as we head into Halloween, the impacts may scare potential homebuyers. Purchase activity has slowed to a virtual standstill, affordability remains a significant hurdle for many and the only way to address it is lower rates and greater inventory.
Information provided by Freddie Mac.
For Week Ending October 14, 2023
According to ATTOM’s Q3 2023 U.S. Home Affordability Report, median priced single-family homes and condos were less affordable compared to historical averages in 99% of counties nationwide in the 3rd quarter of 2023. Home sale prices have continued to rise across the country, and with mortgage rates above 7%, major homeownership expenses now take up 35% of the average national wage, the highest level since 2007, and well above the 28% affordability standard commonly used by many lenders.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 14:
- New Listings decreased 8.8% to 1,187
- Pending Sales decreased 6.3% to 800
- Inventory decreased 7.8% to 8,813
FOR THE MONTH OF SEPTEMBER:
- Median Sales Price increased 2.4% to $371,000
- Days on Market increased 6.3% to 34
- Percent of Original List Price Received increased 0.4% to 99.3%
- Months Supply of Homes For Sale increased 20.0% to 2.4
All comparisons are to 2022
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
October 19, 2023
Mortgage rates continued to approach eight percent this week, further impacting affordability. In this environment, it’s important that borrowers shop around with multiple lenders for the best mortgage rate. With research showing down payment is the single largest barrier to first-time homebuyers attaining homeownership, borrowers should also ask their lender about down payment assistance. Launched this week, Freddie Mac’s DPA One® tool helps lenders and homebuyers identify and take advantage of down payment assistance programs nationwide.
Not only are homebuyers feeling the impact of rising rates, but home builders are as well. Incoming data shows that the construction of new homes rebounded in September but as rates keep rising, home builders appear to be losing confidence. As a result, construction could trend down in the short-term.
Information provided by Freddie Mac.
For Week Ending October 7, 2023
Adjustable-rate mortgages (ARM) continue to grow in popularity as prospective homebuyers aim to combat rising housing costs. Applications for 5/1 adjustable-rate mortgages rose 32.5% the week ending October 6 from four weeks earlier, according to the Mortgage Bankers Association. Effective rates for a 5/1 ARM averaged about 6.66% compared to 7.49% for a traditional 30-year fixed-rate mortgage, with the share of ARM applicants representing 9.2% of all borrowers, the highest percentage since November 2022.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 7:
- New Listings decreased 4.4% to 1,226
- Pending Sales increased 2.3% to 836
- Inventory decreased 7.7% to 8,740
FOR THE MONTH OF SEPTEMBER:
- Median Sales Price increased 2.3% to $370,805
- Days on Market increased 6.3% to 34
- Percent of Original List Price Received increased 0.4% to 99.3%
- Months Supply of Homes For Sale increased 20.0% to 2.4
All comparisons are to 2022
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
