-
Mortgage and Real Estate News for Tuesday January 7th 2025
Daily Mortgage and Real Estate News for Tuesday, January 7th, 2025:
Some significant developments can be noted in the mortgage and real estate markets as of January 7, 2025:
Mortgage Rates
Current Rates:
The average rate for a 30-year fixed mortgage is 6.91%, up from 6.85% the previous week. This marks the highest rate since July 2024.
Forecast:
- Analysts predict that mortgage rates will remain elevated throughout 2025, averaging around 6.4%.
- This is slightly lower than the 6.7% average in 2024 but still above the historical average of 4% from 2013 to 2019.
Housing Market Trends:
Home Prices:
- Nationally, home prices are projected to rise 3.7% in 2025, followed by 4% in 2024 and 1.1% in 2023.
- This trend is expected to continue due to limited housing inventory and sustained demand.
Sales Activity:
- Existing home sales are expected to increase by 1.5% to 4.07 million units in 2025, which is still below the 2013-2019 average.
- The supply of homes for sale is expected to improve by 11.7%, and new home constructions are projected to surge by 13.8%, reaching 1.1 million new units.
Current Rates:
- The average rate for a 30-year fixed mortgage rose to 6.91% from 6.85% the previous week, marking the highest since July 2024.
Forecast:
- Mortgage rates are expected to remain elevated throughout 2025, averaging about 6.4%, slightly lower than the average of 6.7% in 2024.
- However, it will still exceed the historical average of about four percent between 2013 and 2019.
Regional Insights:
Wisconsin Market:
- Many predict the Wisconsin real estate market will favor sellers during 2024, with a slow rise in home prices and a 6.5% increase in the number of homes for sale.
- Buyers have more choices today, but it is still competitive.
Climate Hazard Considerations:
Climate-Risk Scores:
- Climate risk assessments are becoming important to homebuyer decision-making processes.
- Platforms like Zillow now provide climate-risk scores, which indicate potential damage from flooding, fires, or winds over the next three decades.
- The scores may affect property prices and buyer behavior, making homes in less risky areas more desirable.
Mortgage rates are higher, climate risks are receiving increased attention, and home prices continue to increase. Prospective buyers and sellers should keep pace with these trends to make informed decisions about their properties.
-
0 Replies
Sorry, there were no replies found.