We saw a slight drop in mortgage rates this week with the average at 3.66% and .6% in fees and points. Considering that residential real estate accounts for one-sixth of the economy, the experts at Freddie Mac’s Economic & Housing Research Group believe the improving market will support economic growth heading into next year.
It’s believed that the U.S. and China ongoing trade rollercoaster and protests in Hong Kong pulled the U.S. Treasuries down and mortgage rates followed the path.
Mortgage applications for new home purchases increased 31.5 percent from this time last year. Builder’s must have had a feel for this news because for the last four months, housing starts and permits have been on the rise. Some speculate this increase in supply coming soon will lead to slower price growth and improve the affordability issue. Time will tell if that’s the case.
In contrast to new homes only, mortgage applications overall fell last week by 2.2%.
Nation Real Estate News
Yesterday the National Association of Realtors released their Existing-home sales report with October data. The Midwest and south saw growth where the northeast and west saw a drop in sales.
We bounced back from last month were the four major U.S. regions were split and total existing home sales increased 1.9% from September.
Lawrence Yun, NAR’s chief economist, said, “Historically-low interest rates, continuing job expansion, higher weekly earnings and low mortgage rates are undoubtedly contributing to these higher numbers. We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”
DFW Market Stats
This week we take a look at the hottest areas in DFW. This is a ratio of pending sales as a percent of active listings.
The top hottest areas are:
5. Bedford (MLS Area 120)
4. Watauga (MLS Area 128)
3. Grand Prairie (MLS Area 275)
2. Arlington Central SE (MLS Area 82)
1. Grand Prairie (MLS Area 273)
These areas also have 6 weeks or less of inventory. Other areas with less than 6 weeks of inventory are:
If you’re a builder trying to make your end-of year sales numbers, now could be a good time for you. It’s not a homerun for selling new construction but you have more buyers looking, which helps.
For buyers, rates are still great though inventory is very low in some areas, so you may have to be patient to purchase if you’re not flexible on your criteria.
For sellers, the market is still positive though your buyer pool may be getting a little smaller.
If you’re looking to buy or sell real estate in DFW, let’s talk. Contact us on our website or call us at 214-803-4444.
Our next update will be in two weeks. I’m taking next week off for the Thanksgiving break. I hope you have a good one and I’ll see you on December 6th.