What’s Up with Real Estate?

National Real Estate News

A cruel October

Average 30-yr mortgage rates have jumped 75 basis points (0.75%) over the last month and are approaching 7% again. All this despite the Fed cutting rates by 50 basis points (0.50%) on September 18. While the much stronger than expected Sept jobs report started the sell-off in bond prices, lately the concerns have focused on the USA’s rising debt levels. [Source: Mortgage News Daily]

Sales stuck at low levels

Despite mortgage rates that had been declining for the four preceding months, existing home sales in September failed to revive, falling 1% month-over-month to a seasonally-adjusted, annualized rate of 3.8 million units sold. This pace of sales is actually BELOW what it was in 2008 – when transaction volumes bottomed after the housing crash. [Source: NAR]

Less competition

Competitive ferocity always wanes in the fall and winter, but the September 2024 Realtors Confidence Index showed that the residential real estate market is even cooler that it was at the same time last year. There are fewer people competing for properties, only 20% of homes sold above their listing price, and homes are lingering on the market longer. [Source: NAR]