Market Trends: November 2023
Considering some of the dramatic moves the market has made over the last 18 months, the supply of homes remains at significantly depressed levels. At the beginning of October, mortgages had reached a high of 8% for a 30-year fixed mortgage. But as the month moved on, rates began to significantly ease falling to 7.5% by the first week in November and in December in they had fallen to 7.46% for a 30-year fixed-rate mortgage.
For sure, many potential buyers are anxiously waiting on the sidelines for the rates to come down into the 6% range as inventory remains steady. November pending sales were virtually unchanged as compared with October and only 5.2% lower than those for November 2022.
Mortgage News Daily puts the 30-fixed rate at 6.5%, which is significantly lower than it had been for the last year.
According to the National Association of Realtors, the number of buyers appears to be increasing as the number of lockbox openings has risen. Here in the Northeast pending sales increased 0.8% month-over-month in October and climbed 0.5% in the Midwest. In the South pending sales fell 2.3% year-over-year as compared with 2022.
At this point the most significant variables is mortgage rates, which can range anywhere from over 7% to 6.5%. So as mortgage rates continue to fall, this can provide an extra $300 per month savings for a typical buyer from where they had been at the peaks of the mortgage wars. Ultimately, the major factors impacting the real estate market will continue to be:
One. Inventory.
Two. Mortgage rates.
Three. Home prices for existing homes.
Four. Inflation.
Five. Challenges to saving enough for a down payment.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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