This Spring … from CNN Money
Less Competition: A limited number of homes on the market will help sellers nab top dollar, and may even spur bidding wars and multiple offers. The National Association of Realtors® reports that inventory levels nation-wide were at a 4.6 month supply in February. A balanced market is considered to fall between a 5-7 month supply.
Mortgage Rate Hikes Loom: Mortgage rates are still sitting near historical lows, with the 30 yr. fixed rate mortgage hovering under 4%. The low rates have helped push more buyers into the marketplace, but they could also be a good thing for sellers who are looking to rebuy. However, rates aren’t expected to remain this low for too much longer, which may prompt a rush this spring. “When interest rates are thought to be escalating, we see a wave up of activity with people getting off the sidelines,” say Budge Husky, president and CEO of Coldwell Banker Real Estate.
Soaring Rental Costs: Also spurring more potential home buyers off the sidelines: Rising rental costs. Rental prices have increased 15% nationwide in the past five years in 70 metro areas across the U.S. according to NAR research. “Every time there’s an increase, it triggers the decision processes on whether renters should go into the market and buy, “Huskey told CNN Money “It allows others to move up the chain in the market.”
Locally, our home inventory at some price points remain low. We are seeing more first time home buyers jumping into the market, creating opportunity for trade-up sellers to purchase with the low rates.
Today rates per Bankrate.com:
Fixed Rate: 3.75% – down .01 from last week
15 Year Rate: 2.95% – down .02 from last week
5/1 Arm Rate: 3.03% – down .19 from last week