What if I told you that the largest plunge in mortgage rates in a year just happened? What does this mean for you, whether you're a homebuyer, a homeowner, or simply a concerned citizen? This episode brings you up-to-date with the latest twists and turns in the real estate market. We discuss the current housing market data, including the 3% rise in mortgage purchase applications from last week and the unexpected 20% drop from last year. We also shine a spotlight on the current home sales scenario, revealing a significant 3.7% increase in the median home sales price from last year, partly due to elevated mortgage rates.
Things get even more intriguing with a discussion on the stabilizing interest rates, as reported by CNN - the most significant one-week drop since last November. Discover the implications of falling rates on the economy, and the necessity of maintaining market stability. Gain fresh perspectives on how businesses, business owners, and families can strategically plan based on the current interest rates. This episode is packed full of real estate revelations that'll keep you informed and ready to navigate the market. Make sure to join us next week for more!
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Mortgage rates plunge by the largest amount in a year. Find out more in this week's weekly real estate market update. But before that, here's this week's housing market data. Mortgage purchase applications are up 3% from a week earlier and down 20% from a year earlier. Google searches for homes for sale are down 7% from a month earlier and down 21% from a year earlier. Median home sales price was $368,500, up 3.7% from a year earlier the biggest increase in a year. Prices are up partly because of elevated mortgage rates. We're hampering prices. During this time last year, the median asking price of newly listed homes was $379,725, up 4.9% from a year earlier the biggest increase in a year. The monthly mortgage payment on the median asking price was $2,732 at a 7.76% mortgage rate $8 shy of the all-time high set two weeks ago. Pending home sales were down 9% year over year. New listings of homes for sale are up 1.5% year over year the second year over year increase since July of 2022. The increase is partly because of new listings were falling at this time last year. Active listings dropped 9.4% from a year earlier the smallest decline since July, at their highest level since the start of 2023. 36.8% of homes that went under contract had an accepted offer within the first two weeks on the market. Homes that sold were on the market for a median of 34 days and 29% of homes sold above their final list price. The best news here is that interest rates are stabilizing and they're coming down. This is good stuff and reported by CNN. Business mortgage rates tumble this week in the biggest one-week drop since last November. It's the second straight week that rates have fallen, after rising for seven consecutive weeks. The 30-year fixed mortgage fell to an average of 7.5% in this week's ending November 9, down from 7.76 the week before. According to data from Freddie Mac that they released on Thursday A year ago, the average 30-year fixed rate reached 7.08% Its highest level in 2022. As treasury yields declined, the 30-year fixed mortgage rate dropped a quarter of a percent. Thank goodness for that the largest one-week decrease since last November, said Sam Qatar, freddie Mac's chief economist. Now many in the business space and many economists think that it's not good that the rates start dropping again Now. I agree partly with that. I don't agree that the rates should go back down to zero nearly zero, what they were two years ago but I think stability in the market is good in the capital markets. I mean, even if they're going to stay here, let's stay here and let's level out so businesses, business owners, families can plan out. Now that we know what the interest rates are going to be, we can forecast and we can strategically make our financial moves accordingly. And this has been your weekly Real Estate Market Update. I'll see you guys next week, peace.