The average 30-year fixed rate mortgage exceeded 5% in April, the highest level
since 2011, according to Freddie Mac. The recent surge in mortgage rates has
reduced the pool of eligible buyers and has caused mortgage applications to
decline, with a significant impact on refinance applications, which are down more
than 70% compared to this time last year. As the rising costs of homeownership
force many Americans to adjust their budgets, an increasing number of buyers are
hoping to help offset the costs by moving from bigger, more expensive cities to
smaller areas that offer a more affordable cost of living.
New Listings were up 0.3 percent to 383. Pending Sales decreased 17.5 percent to
279. Inventory shrank 29.0 percent to 503 units.
Prices moved higher as Median Sales Price was up 12.7 percent to $265,500. Days
on Market increased 16.7 percent to 42 days. Months Supply of Inventory was down
37.5 percent to 1.5 months, indicating that demand increased relative to supply.
Affordability challenges are limiting buying activity, and early signs suggest
competition for homes may be cooling somewhat. Nationally, existing home sales
are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5
straight months of under contract declines, according to the National Association of
REALTORS®. Inventory remains low, with only 2 months supply at present, and
home prices continue to rise, with the median existing home at $373,500, a 15%
increase from this time last year. Homes are still selling quickly, however, and
multiple offers are common in many markets.