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Mortgage Rates & Real Estate Market Insights Feature Image
Posted on June 1, 2023 3 minute read

Mortgage Rates & Real Estate Market Insights

What's in this article?

Latest U.S. Mortgage Rates 2023-05-25
The home sales index is down slightly
The data is in—where the market is heading

Hello, future homebuyers! In this newsletter, we’ll cover the latest U.S. mortgage rates and provide you with valuable insights into the current real estate market based on recent reports. Let’s dive in!

Latest U.S. Mortgage Rates 2023-05-25

  • 30-year fixed: 6.57% (previous week: 6.39%)
  • 15-year fixed: 5.97% (previous week: 5.75%)
  • 30-year FHA index: 6.680% (previous week: 6.521%)
  • 30-year fixed rate Jumbo: 6.694% (previous week: 6.751%)

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The home sales index is down slightly

In the National Association of Realtors (NAR) report, contract signings showed minimal changes in April. The Pending Home Sales Index (PHSI) slightly decreased by 0.8% to 111.4 in April, compared to 112.3 in March. However, compared to April 2020, the index increased by 51.7%.

The report highlights that the stagnation in contract signings points to a need for increased housing inventory. It emphasizes that more inventory is essential to moderate price growth and create a balanced market. The data suggests that understanding local market conditions and trends is crucial to effectively navigate the real estate landscape.

The data is in—where the market is heading

New data is in for what the housing market has been experiencing—let’s take a look.

Home prices experienced a decline from the previous year due to increased mortgage rates affecting homebuyer demand and because prices were close to their all-time high during the same period last year. 

In April 2022, the median sale price was $425,634, just short of the $432,109 record set the following month.

Housing prices drop significantly in several metro areas

The most significant drops occurred in expensive California markets and pandemic boomtowns, where prices skyrocketed during the pandemic and are now returning to more sustainable levels. 

The largest decreases were seen in: 

  • Oakland, CA metro area (-16.1% or $174,500 YoY)
  • Austin, TX (-15.3% or $85,000)
  • Boise, ID (-15.1% or $80,000)
  • San Francisco (-13.4% or $220,000)
  • Salt Lake City (-10.9% or $60,000)

All five metros posted record declines in April, except for Boise, which had the second-largest drop on record (the largest being in March).

New listings and pending sales drop

High mortgage rates have caused both buyers and sellers to hesitate

New listings dropped by 26.1% YoY on a seasonally adjusted basis in April as homeowners chose to maintain their relatively low rates. This was the largest decline on record, aside from April 2020 when the pandemic stalled the housing market.

Pending home sales decreased by 21% YoY on a seasonally adjusted basis in April—an improvement from the record 36.1% decline in the fall. 

Pending sales increased by 3.1% from March, marking the first month-over-month increase since December and the largest increase since September 2021.

A bright spot in Texas

The Texas housing market is faring relatively well, with five of the 10 metros showing the smallest declines in pending home sales. 

Fort Worth, TX, had the smallest decrease in the country (-0.8%), followed by Dallas (-1.9%). 

Other locations include:

  • North Port, FL (-5.2%)
  • Atlanta, GA (-7.4%)
  • Detroit, MI (-8.7%)
  • Indianapolis, IN (-11%)
  • McAllen, TX (-11.1%)
  • Tampa, FL (-11.3%)
  • San Antonio, TX (-12.9%)
  • El Paso, TX (-13%)

The five Texas metros mentioned also experienced the smallest declines in new listings. Sales are performing relatively well in Texas, partly because the supply shortage is less severe. Texas issued 263,000 residential building permits last year, more than any other state and well above second-ranked Florida, which had 212,000.That’s it for this week. Stay in touch with Homefinity—your best mortgage and real estate market information partner.

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