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Mortgage Update
Mortgage demand continued to crumble last week, as mortgage rates climbed to their highest level since 2010. Total application volume fell 5% last week compared with the previous week and was nearly half of what it was one year ago, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.20% last week from 5.13%, with points rising to 0.66 from 0.63 (including the origination fee) for loans with a 20% down payment. One year ago, the rate was exactly 200 basis points lower at 3.20%.
Big picture, the rates have essentially ticked back up to pre-pandemic levels. While refinancing may no longer make sense, rates are still plenty low enough for buyers to purchase a home in this market.
If you'd like to chat more about rates, or have questions about refinancing or buying, please let me know.
NEO home prices rise while the number of homes sold dips
While the number of homes sold in Ohio dropped in March compared to the same month last year, average sale prices continued to rise. Prices were up in 12 of the 14 counties in Northeast Ohio.
The average sale prices across Northeast Ohio ranged from $147,752 in Columbiana County to Geauga County’s high of $435,042, according to MLS Now. In Cuyahoga County it was $234,192.
Statewide, the average sales price was $247,123, an 11.1% increase from March 2021, according to the Ohio REALTORS trade association. Sales numbers were down 4.8%.
The low sales numbers and increased prices are more evidence of a competitive market. Too few homes on the market to meet the demand of people seeking to buy are driving prices up.
The most sales activity generally occurs during the spring and summer, and with that prices can also rise, so agents said not to expect the market to cool down in the short term, even as interest rates are rising.
There's still a good amount of transactions happening, just happening a little differently from before. Lots of tactics I have seen to have an offer accepted, even when there are multiple bids.
Listing of the Week
3834 Northwood Road
University Heights
A pair of my clients were lucky enough to get this highly desirable University Heights home under contract in the last week. Brand new kitchen on a quiet street in a great neighborhood. Happy to have been able to find such a gem for my buyers!
