Mortgage rates continued to climb this past week, resulting in a 25-year low in mortgage applications nationwide (also in part because of Hurricane Ian, which crushed demand in Florida). The 30-year fixed rate hit 6.75% last week, the highest rate since 2006. Many conversations we’ve had recently include other loan products than conventional 30-year fixed, such as adjustable rate mortgages. There are also strategies to buy down rates, getting buyers into the houses they want with lower payments.
The single family sales market continues to be competitive, although the median price for single families has started to slightly dip. The least amount of single family houses went under contract this month since March, a sign that less buyers are putting properties under contract as we move through the fall.
We found the most interesting part of the single family graphic to be the sharp uptick in properties listed, close to what we’d normally see in spring markets. If that trend continues, and number of pending’s keeps trending downwards, motivated sellers could begin to cut prices further.
With condominiums, prices have held mostly steady the last couple of months. If the surging inventory trend continues the through the holidays (normally a much slower time for residential sales), it could lead to price cuts in the winter. On a multi-year basis, Greater Boston condominium prices are back down to 2019 levels after spiking significantly during last year’s interest rate boom.