Mortgage and Real Estate News Weekend Edition: Market Wrap-Up Update (December 16 – December 21, 2024):

Mortgage Rates

Current Rates:

• The average 30-year fixed mortgage rate is steady at 6.4% as of December 21, with the average fifteen-year fixed in the 5.8% region.
• The ongoing stability during a slow period provides some relief to home buyers.

Market Influences:

• Inflation figures and the Federal Reserve’s message on the likely direction of interest rates have contributed to fluctuations in existing economic indicators, keeping mortgage rates slightly further tempered.

Home Sales Activity

Existing Home Sales:

• In November, the National Association of Realtors registered a surge of 1.5% in existing home sales.
• This increase signals a boost in buyer activity for that month, caused primarily by seasonal changes and a subsequent boost in buyer activity.

Pending Home Sales:

• The market shows signs of strength going into the new year, as pending home sales also bumped by 2.3% during November.

Housing Inventory

Inventory Levels:

• Despite the increase in sales, housing inventory remains tight.
• The current supply of homes is around 2.7.
• This number is fairly low compared to the historical average of six over the months.

New Listings:

• In December, new listings noted an increase of 4%, which is commendable.
• This further shows that despite sellers’ affordability challenges.
• There is still a willingness to join the real estate bandwagon.

Home Prices

Price Trends:

• The median existing home price has served as a foremost determinant in history.
• The average selling price at the national level was $370,000, down almost two percent compared to the past year.

Regional Variations:

• Particular regions within the Southern and Midwestern parts of America are either showing slight rises in value or stabilization of values, in contrast to the major restructuring occurring within the Californian and New York markets.

Foreclosure Rates

Foreclosure Data:

• Financial strains on borrowers rapidly increase, resulting in foreclosure filings soaring by 10% in the last month.
• Significant activity has been done in foreclosures in Nevada and New Jersey.

Government Response:

• Local governments are trying to implement support measures for families facing foreclosure.
• These measures incorporate counseling services and monetary support.

Regulatory Developments

Federal Reserve Meetings:

• Over the recent months, mortgage rates have demonstrated signs of higher stability than in the past.
• This is due to the federal funds rate remaining steady after the Federal Reserve’s recent meeting.

Legislative Initiatives:

• Congress is paying attention to ongoing discussions on amending housing policies such as zoning laws and increasing funding for affordable housing.

Market Outlook

Outlook Towards 2025:

• Analysts expect the housing market to stabilize further in early 2025 if there are more sellers since there might be more inventory.
• However, other headwinds, like high mortgage rates and economic uncertainty, may continue to dampen buyer demand in the property market.

Affordability Constraints:

• The affordability constraint continues to be serious, especially for first-time buyers.
• More attention to the developments of economic factors and interest rate fluctuations will be very important for the housing market’s health in the months close to the elections.

The picture of the mortgage and real estate market between 16 and December 21, 2024, resembles a guarded optimism given the developing challenges. There are signs of home sales picking up modestly and mortgage interest rates stabilizing, which is positive. In contrast, supplies and affordability remain key drivers in the lead-up to the new year. The key economic indicators and regulatory measures have given clues on what to anticipate in housing for 2025.

• This discussion was modified 1 month, 1 week ago by  Gustan Cho.
• This discussion was modified 1 month, 1 week ago by  Gustan Cho.