Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.
- New Listings decreased 9.3 percent for Single Family homes and 7.1 percent for Townhouse/Condo homes.
- Pending Sales increased 33.9 percent for Single Family homes and 45.2 percent for Townhouse/Condo homes.
- Inventory decreased 55.3 percent for Single Family homes and 23.5 percent for Townhouse/Condo homes.
Median Sales Price increased 14.8 percent to $432,750 for Single Family homes and 11.3 percent to $200,250 for Townhouse/Condo homes. - Median Time to Contract decreased 54.5 percent for Single Family homes and 13.7 percent for Townhouse/Condo homes.
- Months Supply of Inventory decreased 59.0 percent for Single Family homes and 25.9 percent for Townhouse/Condo homes.
For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.