The gap between new listings and new pending sales has been widening over the past 3 weeks.
|Oct. 15-21||Prev 4 Week Avg.||% Change||Oct. 8-14|
|New Pending Sales||785||771||1.78%||769|
|30 Year Fixed Mortgage||3.09%||2.98%||3.6%||3.05%|
The result? Inventory is starting to drop at a faster pace.
New pending have been rising for 4 weeks straight, a sign that buyers are starting to feel the inventory squeeze and possibly getting antsy with rates rising.
Mortgage rates continued their trek higher last week, as expected. Inflation fears continue to grow and the supply chain woes only appear to be getting worse.
Random side thought
We don’t talk about this enough…
Even though mortgage rates are increasing, they are increasing well below the rate inflation is increasing.
Inflation is running at over 5% right now. Mortgage rates are still below 3.5%…and most mortgage interest is tax-deductible meaning the effective rate on that same mortgage is 25%-50% less depending on the tax situation of that person.
In other words, people with mortgages right now are effectively earning a 2%+ override on all the money they are borrowing, all the while real estate values are going up.
In The News
- San Diego buyers are scrambling over fewer available properties
- The market for single-family home rentals grows
- San Diego County residents shoulder some of the highest monthly bills
- Zillow has an inventory problem
The Week Ahead
- For the first time in 2 weeks, we have something other than quarterly business earning reports to look at to help us in our efforts to stay ahead of the real estate game – the monthly consumer confidence and new home sales reports are set to drop this week.