Promising Trends Amid Rising Fixed-Rate Mortgages

9 months ago

Promising Trends Amid Rising

Fixed-Rate Mortgages

For Week Ending July 15, 2023

As we analyze the real estate landscape for the week ending July 15, 2023, we find a plethora of promising trends to embrace. Despite the challenges posed by rising fixed-rate mortgages, the emergence of adjustable-rate mortgages (ARMs) has breathed new life into the market. Homebuyers, especially those seeking loans exceeding $1 million, are increasingly turning to ARMs as a viable solution.

The Surge of Adjustable-Rate Mortgages

Intriguing data from Corelogic has shown that ARMs have surged in popularity, accounting for 18.6% of the dollar volume of conventional single-family mortgage originations, up from a mere 4% in January 2021. For homebuyers opting for mortgage originations above $1 million, ARMs have seen an impressive rise, comprising 45% of the dollar volume. This reflects a significant 6% increase compared to the same period last year.

Twin Cities Market Activity Overview

Let's dive into the data presented in the charts above and unlock valuable insights! 📊📈 Despite a decline in closed sales, it's essential to consider various factors influencing this, not solely interest rates. 💡 Additionally, our median sales price remains resilient, showcasing the strength of our Twin Cities market amidst challenges. 💪 Don't be misled by the media—our market is thriving! 🌟 Stay informed with our weekly market updates #GetTheScoopHere

The Twin Cities region continues to be a dynamic and thriving real estate market. Let's take a closer look at the key indicators for the week ending July 15 and the month of June, all compared to the previous year.

Week Ending July 15:

New Listings experienced a minor decline of 15.2%, reaching 1,527. This decrease signifies a balanced market where inventory levels meet buyer demand, offering a variety of choices for prospective homeowners.
Pending Sales dipped by 4.7% to 1,067. While this represents a slight downturn, it is essential to consider the larger picture of market stability, fostering an environment of measured growth.
Inventory saw a decrease of 14.3% to 7,674, indicating a continued need for a diverse range of available properties to cater to the diverse needs of homebuyers.

Month of June:

Median Sales Price achieved a commendable 0.5% increase, reaching $382,000. This growth reflects the robust nature of the Twin Cities real estate market and the value it continues to offer to both buyers and sellers.
Days on Market experienced a 47.6% increase, bringing the average to 31 days. This uptick signifies a market that demands thoughtful consideration, fostering an environment where buyers and sellers can make well-informed decisions.
Percent of Original List Price Received witnessed a 1.9% decline, settling at 101.3%. It's worth noting that this figure remains favorable, reinforcing a market that fosters transparency and equitable negotiations.
Months Supply of Homes For Sale exhibited a rise of 17.6% to 2.0 months, offering prospective buyers more options while maintaining an overall healthy balance between supply and demand.

Data Source: NorthstarMLS, provided by Minneapolis Area REALTORS®.

Buyers:

If you're a buyer and have questions about the home buying process, be sure to download my Ultimate Buyers Guide.

Looking For A LOAN OFFICER? Check out Jane & Zach Johanns with New American Funding by CLICKING HERE. You can even apply for pre-qualification right on the site.

Want to crunch some numbers before you buy? Try out my Mortgage Calculator by clicking here!

Ready to start your home search? Click Here To Get Started!

Sellers:

If you’re a seller, now might be the right time for you to put your home on the market. Wondering What Your Home Is Worth? I would love to help. Let's connect and set up a time to talk about your goals and plans for selling!