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Owning A Home Is A Keystone Of Wealth, Providing Both Financial And Emotional Security. Ask Any Seller
By Kevin Joyce
It’s all over the news. The average rate on a 30-year mortgage eased for the sixth week in a row to its lowest level since December. Good news and a welcome boost in purchasing power for home shoppers just as the annual spring homebuying season gears up..
The average rate fell to 6.76% from 6.85% last week, mortgage buyer Freddie Mac said last week. A year ago, it averaged 6.94%.
And, there’s more good news for 15-year mortgages. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking lower rates, fell to 5.94% from 6.04% last week. A year ago, it averaged 6.26%, according to Freddie Mac.
The decline in mortgage rates rates changes the affordability equation for some prospective home shoppers, especially those ready to jump on available inventory. When rates rose a bit in January, sales of previously occupied homes fell, despite a wider selection of properties on the market.
And added construction of 55-plus senior living apartment complexes around Rockland should add inventory as older residents downsize into newly built, lower maintenance apartment units.
The time to enter the market as a buyer or seller is now.
Mortgage rates hate uncertainty, and how some of the economic policies of the new administration will impact both existing and new home prices, and interest rates is a big unknown.
Here’s some interesting data to consider for both buyers and sellers:
- The number of homes actively for sale continues to be higher compared with last year, growing by 27.5%, a 16th straight month of growth.
- The total number of unsold homes, including homes that are under contract, increased by 18.2% compared with last year.
- Sellers listed their homes at greater rates than last year, with newly listed homes increasing 4.2% year over year, a bit lower than January’s pace.
- More small homes are being listed this year, than previous years.
- Homes spent 66 days on the market. This is five days more than last year.
- The share of listings with price cuts grew once again compared with last year, with 16.8% of sellers cutting prices in February, up from 14.6% in February 2024.
Here’s the takeaway. Mortgage rates are unlikely to see a major decline, so the time to buy is now. With more homes on the market, and days spent unsold growing, the time to sell may also be now, especially if this trend worsens for sellers.
And, in the words of Will Rogers: “Don’t wait to buy real estate, buy real estate and wait,” because owning a home is a keystone of wealth, providing both financial and emotional security.
