How much more pain can buyers really handle?
The good times keep rolling as long as you’re a seller right now. Not so much if you’re a buyer.
|Jan. 7-13||Prev 4 Week Avg.||% Change||Dec. 31 - Jan. 6|
|New Pending Sales||612||423||44.85%||326|
|30 Year Fixed Mortgage||3.45%||3.13%||10.40%||3.22%|
Weekly new listings surpassed weekly new pending sales for a whopping total of one week. It went right back to the same trend we’ve been riding since July last week.
Buyers are getting aggressive (definitely an understatement) with their offers again which is resulting in massive value gains for sellers.
And while buyers are having to pay more, they are also getting hit with the fastest mortgage rate increases that we’ve seen in a decade. Double whammy.
There is a small light at the end of the tunnel in that it does appear rates started bouncing off some sort of ceiling last week. Actual rates borrowers were getting locked in at started the week at 3.65%. They ended right about the same level after dropping lower mid-week. If rates bounce lower, this current level will serve as a point of resistance (a ceilling) going forward. We’ll be keeping an eye on this.
Remember, the official Freddie Mac data we use in our weekly data tends to be about a week behind the actual rates borrowers are getting locked in at that week. We use that data because it’s official and verified by multiple sources. When I quote other rates on here, they are from reliable sources but they aren’t official nor consistent and therefore not reliable for accurate trend reporting.
In The News
- A slew of housing reforms are heading to San Diego’s city council for voting.
- Starting Wednesday, US households can order 4 free COVID tests.
- Chula Vista sets new rules for short-term rentals.
The Week Ahead
- It’s a slower news week, at least as it relates to scheduled reports that directly impact the real estate market. But, now that I said that, I’m sure something big will drop. That’s usually how it works.