February 2021
Mortgage interest rates ticked a bit higher in February, but remain below their
February 2020 levels. Interest rates may rise a bit further in coming weeks, but
according to Freddie Mac chief economist Sam Khater, “while there are multiple
temporary factors driving up rates, the underlying economic fundamentals point to
rates remaining in the low 3 percent range for the year.” With rates still at historically
low levels, home sales are unlikely to be significantly impacted, though higher rates
do impact affordability.
New Listings were up 6.1 percent to 1,313. Pending Sales increased 24.9 percent to
1,463. Inventory shrank 53.2 percent to 1,194 units.
Prices moved higher as Median Sales Price was up 14.0 percent to $208,200. Days
on Market decreased 39.1 percent to 39 days. Months Supply of Inventory was
down 57.1 percent to 0.9 months, indicating that demand increased relative to
supply.
For homeowners currently struggling due to COVID-19, government agencies are
continuing efforts to help those in need. The Federal Housing Finance Agency
announced they will allow homeowners with loans backed by Fannie Mae and
Freddie Mac to receive an additional three months of forbearance, extending total
payment relief to up to 18 months. Qualified homeowners must already be in a
forbearance plan as of the end of February.
Information courtesy of CMLS*
