What does the Data Show: As mortgage rates decline, Realtor pending home sales increase by 2.5%.
The number of contracts signed by realtors in December increased 2.5% over November nationally, reflecting a decline in mortgage rates and the first monthly uptick in pending home sales since May. As the housing industry continues to face affordability issues due to high housing costs and mortgage rates, pending house sales are still down 33.8% from December of last year. Home prices continued to rise, up 8.4% from the year before, even as mortgage rates dropped to as low as 6.27% in December, a 0.8 percentage point decline from the high in November. The number of contracts signed decreased in the Northeast and Midwest while increasing in the South and West.
The Housing Market: What This Means:
To the joy of many, mortgage rates have kept dropping, reaching lows not seen since September, giving purchasers the chance to reenter the market. The mortgage payment for a property with a median price was $730 greater in December 2022 than it was in December 2021 despite the fact that mortgage rates declined in December but still remained more than 3 percentage points higher than the year before. As a result, many purchasers wait for the market to turn around before making a purchase.
Even if the market is still in favor of sellers, many homeowners have rethought their plans to list their homes because there are fewer buyers out there, which reduces the prospective gains. This winter’s buyer activity has been constrained by the persistent affordability crisis, although the retreat in mortgage rates this month has shown how eager buyers buyers are to jump back in the market. Now, for the coming spring homebuying season, lower interest rates will also bring the promise f0r more opportunities for both buyers and sellers alike.
Please feel free to search for homes and when you’re ready to capitalize on any of these opportunities reach out and let me be “Your Realtor when your ready”, contact me.
Kevin Rose
Your Realtor when you’re Ready!
337-303-7462
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