Here’s your weekly snapshot of mortgage and real estate headlines for December 24 December 24, 2024:

Mortgage Rate Changes

30-Year Fixed Rates:

• The national average interest rate on a 30-year fixed mortgage hit 6.75%.
• As a result, predicting competitive rates shortly has become easier.

15-Year Fixed Rates:

• The market continues offering 15-year fixed mortgage rates at around 6.15%.
• Much lower than before.

ARM Rates:

• The popularity of adjustable-rate mortgages has prompted lenders to cut back on their offerings.
• 5/1 ARMs, conversely, have an average interest of 6.50%.
• A flash in the arm is observed and foreseen for early 2025, as inflation is also predicted to remain strong.

Housing Market Analysis

Home Prices:

• Key markets such as Florida, Texas, and California show continued appreciation in median home prices. At the same time, states like Wisconsin and Pennsylvania still appear to have leveled out at more sustainable rates.

Inventory Shortages:

• Urban areas, in particular, are experiencing volatile market conditions.
• While demand and, thus, prices continue to stay high, supply remains at historic lows.

Best Buyers’ Markets:

• Buffalo, New York, and Detroit, Michigan, are approaching reasonable prices for new homebuyers.

Here Are The Updates About FHA Loans For 2024

The Federal Housing Administration (FHA) raised the loan limit thresholds effective January 1, 2024.

• In low-cost areas, it is set to $500,000.
• The limit is set at $1.2 million in high-cost areas that can afford it, enabling homebuyers to have more choices.

Non-QM Loans Are Getting Popular Among Self-Employed Borrowers

Non-qualified mortgage loans are becoming more popular as more self-employed individuals enter the market. Various lending institutions have a wide variety of condotel and short-term investing options.

Shift in How Commercial Real Estates Are Sought After

The demand for multifamily building loans is increasing as more builders develop a strategy for constructing more projects in urban and suburban locations. Improvement in market conditions has enabled better entry price points for spec building of 1-4 unit real estate.

Private Equity Market with a Focus on Strategic Sourcing: The Midwest

Wisconsin:

• House prices continue to increase near Madison and Racine counties as more people from the area look for cheap housing and a better lifestyle.

Illinois:

• Chicago has a consistent level of interest for FHA loans, thanks to first-time home buyers who require financing and downpayment assistance programs.

Realstock Investor Programs

Realty investors are moving away from all capital cities and looking towards second-hand rental properties, as there is a good demand for rentals. There is still much interest in short-term furnished rental properties for places that are big tourist spots, but policymakers are increasingly holding back investment.

Top Updates to Regulation: There Is

The National Association of REALTORS(r) has settled on paying a realtor and buyer commission adjustments and structure to be in place come 2025. This has been proposed due to a discussion of concern that the agents will become purely marketing specialists, hence, out of the market.

Watch out for more analysis of these trends as the new year progresses.