Last week, interest rates rise before the Thanksgiving holiday. Freddie Mac has stated that the average interest rate rose from 4.22% to 4.29% for a 30-year fixed loan rate. Rates for a 15-year loan rates rose from 3.27% to 3.33%.
According to the Standard & Poor's/Case-Shiller index released last Tuesday, showed home prices increase in 20 major cities by 13.3% from September 2012. For example, a home on the market last year was listed at $350,000 will have list price of $396,550 in the current market.
How is the increase of mortgage rates effect the real estate market? One factor is the home sales prices are declining which is stabilizing the multiple offer situation we saw earlier this year. The seasonal trend for the fall and winter is normal to be low.
The National Association of Realtors reported a pending sale decrease for the fifth consecutive month.
It will be interesting to see how the market will shift in January 2014 and in the peak season of Spring 2014.
For more information about the local market and local homes for sale, visit www.BetancourtRealEstateGroup.com or email us with a list of your search criteria.
Source: LATimes.com
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