If there is one thing that could be said about the present state of the real estate sector, it is that change is on the way. Over the last 2 years, the pandemic has managed to keep mortgage interest rates incredibly low across the United States, with rates dropping below 3% at times. Despite rising home prices in many markets across the country, record-low mortgage rates made it much easier for purchasers to loan money for home purchases.
That pattern has now shifted. Rates on 30-year fixed-rate mortgage loans had surpassed 4% for the very first time since 2019 as of the week of February 11. This is not only a departure from the previous week when rates were hovering around 3.83 percent, but it is also an inappropriate milestone for borrowers looking to buy residences at record-low rates. Over time, this rate shift could have a considerable impact on other areas of the market, ranging from refinancing lending to the rate of mortgage applications.
This isn’t the only significant change in the real estate market this week. Not only are purchasers confronted with interest rate rises, but housing prices continue to rise as well. Homebuyers are currently confronted with one of the most expensive housing markets in history, and as a result, the purchase frequency loan size has increased. The average conventional loan size has reached a new high of $453,000. The significantly higher mortgage loan is a clear indication that house buyers are trying to borrow larger sums of money to buy homes in this expensive area.
To keep you up to date on what’s going on in the real estate market, real estate platform ZeroDown gathered a per-week real estate market report for Memphis based on Redfin data. Data for the housing market are available for the four weeks ending January 30, 2022. For each statistic, metros with more than 50 homes sold during the period were regarded for metro-level rankings.
Memphis is touted as the best real estate market in the country, with first-time buyers competing with investors for the desired properties. Investors are snapping up homes in Memphis to turn into rental units, drawn in by the city’s low home prices and a high proportion of renters. 04-Jan-2022