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Mortgage Rates Inch Up but Remain in the Mid-Six Percent Range

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January 25, 2024
The 30-year fixed-rate has remained within a very narrow range over the last month, settling in at 6.69% this week. Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market. Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace.

Information provided by Freddie Mac.

Weekly Market Report

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For Week Ending January 13, 2024

Fannie Mae’s Home Purchase Sentiment Index (HPSI) climbed nearly three points to 67.2 in December and was up 6.2 points year-over-year, according to the latest National Housing Survey®. The rise was attributed to increasing consumer optimism about mortgage rates, with a survey-high 31% of respondents indicating they expect mortgage rates will decline over the next 12 months. Homeowners, in particular, had greater optimism about the future of mortgage rates than renters, which could encourage some would-be sellers to list their homes this year, helping to increase the supply of existing homes for sale.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JANUARY 13:

  • New Listings increased 14.5% to 900
  • Pending Sales increased 2.6% to 560
  • Inventory decreased 4.2% to 6,397

FOR THE MONTH OF DECEMBER:

  • Median Sales Price increased 1.3% to $353,700
  • Days on Market remained flat at 50
  • Percent of Original List Price Received increased 0.4% to 96.7%
  • Months Supply of Homes For Sale increased 13.3% to 1.7

All comparisons are to 2023

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

Mortgage Rates Decrease to Lowest Level Since May of 2023

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January 18, 2024
Mortgage rates decreased this week, reaching their lowest level since May of 2023. This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale.

Information provided by Freddie Mac.