October 2019
In October, mortgage rates increased slightly from the three-year lows seen in
September. While the Federal Reserve reduced the federal-funds target rate by
.25%, this decline was widely expected and largely factored into mortgage rates
already, which are still approximately 1% lower than this time last year. Fannie Mae
is predicting that continued low rates, and possibly lower rates, are expected in
2020.
New Listings were up 12.5 percent to 1,438. Pending Sales increased 15.6 percent
to 1,195. Inventory grew 8.3 percent to 3,346 units.
Prices moved higher as Median Sales Price was up 6.0 percent to $180,000. Days
on Market decreased 5.5 percent to 52 days. Months Supply of Inventory was up
3.7 percent to 2.8 months, indicating that supply increased relative to demand.
As we begin the slower time of year for home sales, historically low mortgage rates
will continue to support buyer demand and may create additional lift to home prices
as excellent affordability gives buyers the ability to offer more to secure their dream
home. Throughout much of the country, the continued low level of housing inventory
also continues to constrain sales activity from where it would likely be in a balanced
market.
Information courtesy of CMLS*
