SALES DOWN IN DECEMBER—INTEREST RATES?

Marian McPherson of Inman News, a real estate daily email newsletter, reports that the NAR report for December home sales was down in all areas of the country except the South. Was this due to the slight uptick in mortgage interest rates? The Federal Reserve had a .25% rate increase which had been expected and had already been built into the mortgage market prior to December.  That might have had some effect on housing sales. But more likely it was our typical holiday/December weather slow down. The increase caused 30 year rates to jump to about 4%, which historically is still very, very low. The previous decades averaged rates which were much higher, all the way up to 18%. The average price of homes continued to increase despite the slowdown in sales and that probably caused some buyers to pause looking over the holidays, while they reassessed their position and what kind of home they could buy. All in all January sales are coming back with a bang and 2017 is expected to be as good as 2016, which is the best year since 2006!. If you would like to read the article I referred to above, it is available on my website, mnhomesbydave.com . It is under the Real Estate News tab. I also have the current 13 county metro stats under the How’s the Market tab and you can search all the homes currently for sale in the MLS. Give it a try and let me know what you think. Thanks for reading

David Feerhusen

David Feerhusen

Broker/Realtor, CDPE, GRI, CRB
Contact Me