Market Updates – 5 Things You Need to Know

The Market is Shifting Across the Nation and in Louisville, KY. There’s A Lot To Know. Here’s A Synopsis.

The real estate market is shifting, a reality that you’ve likely noticed even if you’ve not been paying too much attention to the headlines. 


It’s a lot to keep up with, so I wanted to highlight five points of interest:


1. Today, Freddie Mac reported that the average interest-rate on 30-year fixed mortgages jumped 0.41% to 6.7%, more than double the average at this time last year.


2. Mid-September data from Mortgage Banker’s Association shows that mortgage applications are up 3.8%, the first increase in 6 weeks. It’s unusual to see both an increase in applications and an increase in interest rates. This is an indication that some buyers continue to press on, despite the higher rates. 


3. However, the higher rates are forcing other would-be buyers out of the market, particularly first-time buyers. Less competition means a change in the market. “It is no longer the days of easy sale, easy profit. Now it’s the time for price negotiation,” said Lawrence Yun, Chief Economist for the National Association of Realtors.


4. Mortgage rates remain historically low. The historic average mortgage rate is 7.76%. In the 1980s, rates were as high as 18.63% (10//9/81). 


5. When the market was hot, contingencies were not. We are starting to see a return to common norms such as appraisal and inspection contingencies. This is great news for buyers who were losing out on houses because they hesitated to waive these contract clauses designed to protect them. 
 

The bottom line is that even with rising mortgage rates, real estate remains a solid long-term investment.


“The housing market is becoming more balanced where supply and demand are in sync. This is a good thing for retail homebuyers and real estate investors looking for rental properties,” according to investorjunkie.com.




P.S.  I’d love to help you avoid making a big mistake in this market.  If now is a good time for you or someone you know to buy or sell a home, I can help. I have programs in place that make buying and selling easier!