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Mortgage Rates Continue to Come Down

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June 15, 2023
Mortgage rates decreased slightly this week in anticipation of the pause in rate hikes by the Federal Reserve. As inflation continues to decelerate, economic growth is slowing and the tightening cycle of monetary policy is reaching its apex, which means mortgage rates are expected to decrease later this year and into next.

Information provided by Freddie Mac.

Weekly Market Report

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For Week Ending June 3, 2023

Builder confidence continues to rise thanks to a boost in new-home sales, as a limited supply of existing homes for sale has helped drive demand for new homes this year. According to the National Association of Home Builders (NAHB), builder sentiment rose 5 points in May to 50, the fifth consecutive monthly increase and the highest level recorded since July 2022. With interest rates up compared to this time last year, builders’ use of sales incentives has played an important role in attracting buyers, with an average price reduction of 6% reported among the builders surveyed.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JUNE 3:

  • New Listings decreased 20.7% to 1,464
  • Pending Sales decreased 9.8% to 998
  • Inventory decreased 6.7% to 7,000

FOR THE MONTH OF APRIL:

  • Median Sales Price remained flat at $369,900
  • Days on Market increased 64.3% to 46
  • Percent of Original List Price Received decreased 3.6% to 100.1%
  • Months Supply of Homes For Sale increased 33.3% to 1.6

All comparisons are to 2022

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

Weekly Market Report

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For Week Ending May 27, 2023

Sales prices of existing homes rose in nearly 70% of metropolitan areas in the first quarter of 2023, according to the latest quarterly report from the National Association of REALTORS® (NAR). Despite the increase, however, affordability improved slightly from the fourth quarter of 2022, when 90% of metropolitan areas saw annual sales price increases. On average, families spent 24.5% of their monthly income on mortgage payments in the first quarter this year, compared to 26.2% in the fourth quarter last year.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 27:

  • New Listings decreased 19.3% to 1,355
  • Pending Sales decreased 19.1% to 1,184
  • Inventory decreased 5.7% to 6,915

FOR THE MONTH OF APRIL:

  • Median Sales Price remained flat at $369,900
  • Days on Market increased 64.3% to 46
  • Percent of Original List Price Received decreased 3.6% to 100.1%
  • Months Supply of Homes For Sale increased 33.3% to 1.6

All comparisons are to 2022

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

Mortgage Rates Jump Up

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June 1, 2023
Mortgage rates jumped this week, as a buoyant economy has prompted the market to price-in the likelihood of another Federal Reserve rate hike. Although there has been a steady flow of purchase demand around rates in the low to mid six percent range, that demand is likely to weaken as rates approach seven percent.

Information provided by Freddie Mac.