Housing Market & Mortgage Update: Real Estate Market News // Mortgage interest rates are at all-time record lows! In this video, I discuss what effect that is having on mortgage applications as well as home sales.
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Housing Affordability Worsens
In the latest housing market update and according to Freddie Mac the average 30yr fixed rate mortgage remained unchanged from the previous week at 2.72%. This is creating a housing market 2020 boom as well as a refinance boom. A year ago at this time, the 30-year FRM averaged 3.68% so rates are almost 1% lower compared to a year ago.
According to the Mortgage Banker’s Association (MBA), “Mortgage applications increased 3.9% from one week earlier.” Their Refinance Index was 79% higher than the same week one year ago! And their unadjusted Purchase Index was 19% higher than this time last year. The MBA also reported that the “30-year fixed mortgage rates dropped seven basis points to 2.92 percent, another record low in MBA’s survey.”
In other real estate market trends, low interest rates have caused new home purchase mortgage applications to increase 32.9% compared to 1yr ago (source: MBA).
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly
announced the following new residential sales statistics for October 2020. Sales of new single family homes increased a whopping 41.5% compared to Oct 2019. The median sales price of new houses sold in October 2020 was $330,600. Compare that to the median existing single family home sold in Oct 2020, that was $313k. In Oct 2020, the months supply of homes was only 3.3 months (down 40% from 1yr ago). The region in the US that had the highest percentage increase in new home sales was the Midwest (+86.6%) and the West had the lowest (+35.9%). New homes for sale
Comment below: what’s your housing market 2020 forecast and housing market forecast 2021? Do you think a housing crash 2021 will happen and is this a real estate bubble or do you think the real estate market 2020 will continue to surge?
Lastly, Redfin reported that “more than 72% of out-of-towners searching in Sacramento were based in the Bay Area, partly because its relative affordability and proximity is attracting remote workers.” Sacramento was also one of the top cities in the country for people looking to move to a different metro area in Oct 2020.
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Jason Walter, CPA (lic #103885)
Sacramento Realtor/Sacramento real estate agent and native
Realty ONE Group Complete (DRE #01923240)
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Jason Walter is not a practicing tax accountant or a licensed attorney or financial adviser. Therefore, the information in these videos shall not be relied upon as tax, legal, or financial advice from a qualified perspective. If you need such advice, please contact a qualified tax accountant, attorney, or financial adviser. We have taken reasonable steps to check that the information in this video is accurate but we cannot represent that it is free from errors. You expressly agree not to rely upon any information contained in this video – it is for entertainment purposes only.
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