Mortgage & Housing Update 2/23/2023

We’re hoping for a more active spring/summer housing market. This optimism is fueled by an uptick in inventory and stabilization in mortgage rates. 

Tune in to my Mortgage & Housing Update. My name is Pauline Lee. I am a real estate professional, with an expertise in financing. Connect with me for a consultation and to get mortgage ready. I encourage you to get pre-approved. 

Pauline Lee | (617) 965-1988 x205 | pauline@indmortgage.com

Transactions Recovering

January existing home sales rose 3% month-over-month to 4 million units annualized, a high since August 2023. (source: NAR). What’s driving the recovery? 1) lower mortgage rates in Nov/Dec 2023; 2) slightly improved inventory; and 3) normal seasonality. The median nationwide sales price in January was $379,000, up 5% year-over-year. 

Show me the money!

With affordability an issue for most buyers, the % of deals that were “all-cash” in January 2024 rose to 32%. A figure we haven’t seen since 2014! Who has this kind of money? Older homeowners, who have massive equity from selling their existing homes, and property investors. But first time home buyers still accounted for 28% of sales. 

Rates climb higher

Last week average mortgage rates moved above 7% for the first time in several months. This week, rates moved even higher in response to the Fed supporting a “higher for longer” position on interest rates. This opinion was supported by hotter than expected CPI and jobs reports. 

The Fed generally feels that rate hikes are over, but that rate cuts shouldn’t be rushed without greater confidence that inflation was heading for their 2% target. 

Thanks for tuning in to my Mortgage & Housing Update. My name is Pauline Lee. I am a real estate professional, with an expertise in financing. Connect with me for a consultation and to get mortgage ready. I encourage you to get pre-approved. 

Pauline Lee | (617) 965-1988 x205 | pauline@indmortgage.com

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.