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Mortgage and Real Estate News Update for Thursday, January 2nd, 2025
Comprehensive Mortgage and Real Estate News Update Summary for Thursday, January 2nd, 2025.
The real estate and mortgage industry has changed since Thursday, January 2, 2025.
Mortgage Rates
Current Rates:
The average 30-year mortgage rate is 6.91%, up from 6.85% last week. This information has been sourced from AP News.
Market Impact:
Reuters reported that increased bond yields and inflationary fear due to expected economic policies have resulted in high rates. These elevated rates might make it hard for people to sell their homes, lowering the housing inventory or making it unaffordable.
Housing Market Activity
Seasonal Slowdown:
- According to the New York Post, December 2024 marked a decline in the housing sector, with homes now selling for 70 days, a five-year record high.
- Moreover, the median listing price dropped from the previous year’s $15,000 to $402,502.
Inventory Levels
The number of available second-hand homes has declined by up to 15% year on year, forcing the average property price in Ireland during the last quarter of 2024 to 332,109 euros, which is 9% more than last year. As of December 1, 2024, fewer than 10,500 second-hand homes were available.
International Developments
- European countries, including Spain, Portugal, and Greece, are discontinuing their golden visa schemes due to housing cost issues.
- Non-lucrative and digital nomad visas are good substitutes for foreign clients seeking residency options.
California Estate
- This transaction sets a new record as the highest residential sale in Cambria’s history.
- What was once $17.22 million is now the new selling price of a 78.5-acre estate just a few steps from California’s Pacific Coast Highway.
- After being on the market for over 15 years, this transaction was sold for quite the price.
Predicted Transactions for 2025
- Economists have set a threshold of roughly a 6.3% rise in mortgage rates through 2025.
- There might be room for further dipping if conditions heat up more.
For the remainder of the calendar year 2025, home supply is set to improve and rise by 11.7%, allowing selling points to move up by a rough percentage of 3.7%.
The mortgage and real estate regions show steady rising market rates alongside seasonal drop in activity levels. However, the landscape is set to reset itself in 2025 to find room for stabilization.
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