To make the most of your homeownership journey, it’s essential that you pay close attention to the latest data, news, and concepts that are affecting real estate today. That’s why we’re introducing The Home Stretch, a monthly real estate roundup to help you make informed moves.
Let Us Walk You Through It
Can we walk you through these insights in video? Movoto’s Chief Real Estate Officer, Jerimiah Taylor “JT”, will be your guide. With decades of experience under his belt, JT adds incredibly valuable context that you won’t want to miss.
Interest Rates
The average interest rate for a 30-year fixed mortgage started the month at 6.94%, which is at the low end of the 52-week range.
When mortgage rates drop, they should do so before any cuts are made to the federal funds rate. This can be explained by the Fear and Greed Index, a.k.a., the “spread.” Watch the above video to learn what it is and why you should be paying attention to it.
“…interest rates [are] staying higher for longer than was hoped…” -Greg McBride, CFA, Bankrate
Home Sales
Total Existing Home Sales
The number of total existing home sales ticked up slightly to 4M in January, but remains at record lows.
Median Home Selling Price
Meanwhile, the median home selling price dropped slightly month-over-month to just under $380K, but home prices historically fall in winter months due to seasonality.
Despite prices declining month-over-month, the average price of a home sold in January ’24 was 5.1% higher than in January ’23. This marks the seventh month in a row in which home prices increased year-over-year.
And with the biggest inventory spike in nearly 3 years experienced in February, it looks like the market is starting to heat up.
The housing market just saw its biggest inventory spike in nearly 3 years
“New listings for homes for sale climbed 12.9% year-over-year in February…”
So… Is Now the Time to Make Moves?
Mortgage rates are expected to fall, but not until the second half of the year. Meanwhile, home prices are expected to go up even more than they did last year. So if you’re waiting for a lower interest rate, you’re likely to end up using it to purchase a more expensive home…
Want more context? Ramsey Solutions asserts that, “Yes, you should buy a house now if you’re financially ready to do so.” Read the full article here to learn more and determine if you’re financially ready.
Movoto is Here to Help with Your Real Estate Journey
We covered 30-year mortgage interest rates, 10-year treasury yields, the “spread” a.k.a., the fear and greed index, the volume of existing home sales, the median price of home sales, and the median home sale price change year-over-year. These insights should help you make confident decisions regarding your next real estate transaction.
If you’d like to learn specifically how your target real estate market stacks up, get connected with one of our local agents today!
Sources:
* Freddie Mac, 30-Year Fixed Rate Mortgage Average in the United States [MORTGAGE30US], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MORTGAGE30US, February 28, 2024.
** Board of Governors of the Federal Reserve System (US), Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis [DGS10], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DGS10, February 28, 2024.
*** Copyright ©2024 “January Existing Home Sales.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. March 4, 2024, https://cdn.nar.realtor//sites/default/files/documents/ehs-01-2024-summary-2024-02-22.pdf?_gl=1*1mjrfk2*_gcl_au*MTgzMDUwMzExNi4xNzA3NDkyNzA2.
