Lisa Mailhot | October 28, 2024
Buyers
In recent weeks, mortgage rates have taken an upward turn, reaching 6.54% for a 30-year fixed home loan, according to Freddie Mac. This marks a four-week streak of rising rates, leaving many would-be buyers and sellers on edge about where the market is heading.
"The continued strength in the economy drove mortgage rates higher once again this week,"
notes Freddie Mac’s chief economist, Sam Khater. The underlying economic resilience, coupled with shifting data, has led to increased mortgage rate volatility, keeping both buyers and sellers on their toes.
The coming days could be pivotal, with key data releases that may impact mortgage rates. The Federal Reserve is set to unveil its preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, alongside the October jobs report.
"If the data comes out hotter than anticipated, we might see mortgage rates increase during election week,"
warns Realtor.com economist Jiayi Xu. However, she adds that rates are expected to trend lower in the coming months, potentially offering relief for buyers willing to wait.
Interestingly, despite the mortgage rate swings, home prices have shown remarkable stability. For 21 weeks straight, the median list price has remained steady compared to the same period last year. In September, median home prices hovered around $425,000, and price reductions rose slightly, offering savvy buyers potential savings. As Xu mentions,
"Sellers continue to adjust prices to encourage home shopper attention."
As fall progresses, the housing market has seen a spike in available listings, with inventory up 28.7% compared to last year. However, growth in inventory is slowing, suggesting that buyer demand may be beginning to catch up. Fresh listings are also up, marking a 4.7% increase year-over-year. While this may seem like an ideal scenario for buyers, Xu cautions that recent rate increases could discourage new sellers from listing until rates settle further.
With homes spending an average of eight days longer on the market than last year, buyers currently have more time to weigh their options. The typical home spent 55 days on the market last month, as many buyers delayed their purchases in hopes of more favorable conditions. But with a broader selection of listings, committed buyers may find that this fall presents the right opportunity.
“For those looking to purchase a home before the year ends, taking advantage of a slower market, increased inventory, and stable prices could also be a smart strategy,”
adds Xu.
For prospective buyers and sellers, navigating these mortgage rate fluctuations can feel challenging, but the current market offers opportunities for both. If you’re considering a move this season, let’s connect to find a strategy that works for your needs.
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