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The 30-Year Fixed-Rate Mortgage Lingers Just Under 6.5 Percent

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August 22, 2024
Although mortgage rates have stayed relatively flat over the past couple of weeks, softer incoming economic data suggest rates will gently slope downward through the end of the year. Earlier this month, rates plunged and are now lingering just under 6.5 percent, which has not been enough to motivate potential homebuyers. Rates likely will need to decline another percentage point to generate buyer demand.

Information provided by Freddie Mac.

Weekly Market Report

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For Week Ending August 10, 2024

Homebuyer preferences for smaller homes continue to influence builder behavior. According to the U.S. Census Bureau, the typical new single-family home under construction had a median floor area of 2,139 square feet in the first quarter of 2024. That’s down from the same period last year, when the typical new home had a median floor area of 2,256 square feet, and the lowest reading since 2009, according to the National Association of Home Builders.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING AUGUST 10:

  • New Listings increased 4.3% to 1,485
  • Pending Sales decreased 17.3% to 906
  • Inventory increased 12.9% to 9,589

FOR THE MONTH OF JULY:

  • Median Sales Price increased 2.7% to $385,000
  • Days on Market increased 24.7% to 36
  • Percent of Original List Price Received decreased 1.3% to 99.5%
  • Months Supply of Homes For Sale increased 18.2% to 2.6

All comparisons are to 2023

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.