People are starting to wonder “what mortgage can I afford?” as home sales take off.
This January was one of the speediest home selling times on record. So, where are Mortgage Rates headed?
Homes are flying off the market. A new report from Real Estate firm RE/MAX said this January was the fastest January on record in 9 years. RE/MAX’s recent National Housing Report showed that homes would enter and leave the marker within 60 days. Unheard of. Their CEO disclosed that 2018’s winter season is looking much more like the usual spring and summer season in terms of the demand.
“We recently saw the groundhog predict six more weeks of winter, but January housing numbers are telling a different story,” Contos said. “It looks like the spring selling season may have arrived early because home buyers are not slowing down. The speed of this market is on pace with what we saw in the prime of the 2017 selling season.”
The median sales price is also at the highest it has been for January with a 6.7 percent increase, making it now the 22nd month in succession where prices have increased. The only metropolitan area that decreased was Billings, Montana, dropping about 6.4 percent since last year.
Though people are buying quickly, they don’t seem to be buying in bulk. The overall volume of home sales has decreased since last year but a few cities have beat that with cities like Milwaukee seeing an increase of 13.6%.
In addition, it does seem that availability of homes are improving as well with an 8.2 month supply of homes in places like Birmingham, Alabama.
Overall, this means, it looks like mortgage rates are going up, with this year rates hitting a four-year high.
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