MORTGAGE RATES PUSH CLOSER TO THE 8% MARK

via themreport.com — Further stretching affordability for potential buyers, Freddie Mac’s latest Primary Mortgage Market Survey (PMMS) shows that the 30-year fixed-rate mortgage (FRM) averaged 7.63% for the week ending October 19, up six basis points over last week’s average of 7.57%. This marks the sixth consecutive week of increases in the 30-year FRM. A year ago at this time, the 30-year FRM averaged 6.94%.

“Mortgage rates continued to approach 8% this week, further impacting affordability,” said Sam Khater, Freddie Mac’s Chief Economist. “In this environment, it’s important that borrowers shop around with multiple lenders for the best mortgage rate. Research shows that down payment is the single largest barrier to first-time homebuyers attaining homeownership, borrowers should also ask their lender about down payment assistance. Launched this week, Freddie Mac’s DPA One tool helps lenders and homebuyers identify and take advantage of down payment assistance programs nationwide.”

Also, this week, the 15-year FRM averaged 6.92%, up from last week when it averaged 6.89%. A year ago at this time, the 15-year FRM averaged 6.23%.

“Not only are homebuyers feeling the impact of rising rates, but home builders are as well. Incoming data shows that the construction of new homes rebounded in September, but as rates keep rising, home builders appear to be losing confidence,” added Khater. “As a result, we expect construction to trend down in the short-term.”

“Mortgage application activity is now at its lowest level in 29 years as high mortgage rates, limited housing inventory, and affordability challenges continue to constrain borrowers,” said MBA President and CEO Bob Broeksmit. “While 2023 has been a tough time for the housing market, MBA expects that mortgage rates will moderate heading into 2024, which should bring some relief to those looking to buy a home”…READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are sixteen (16) active listings in the MS/VG market this week. Inventory bounced back slightly after last week's dip. The market remains unpredictable with inventory fluctuating from week to week. Will we finally see a steady rise in inventory in the months ahead? Who knows! One thing is for sure—values remain strong in Miami Springs and Virginia Gardens, despite interest rate increases. There are still many qualified Buyers out there, and with tighter inventory and continued high demand, the market is transitioning back to a Sellers' market. Please refer to the articles posted on our website.

A quarter of the active listings are over one million dollars, with one listing even priced for over $2,000,000.00!! Five (5) of the active listings have had a price reduction; two this week. There are two (2) pending sales. Though we were transitioning to a more neutral market, the continued tight inventory and demand, despite higher mortgage rates, gives Sellers an advantage and makes it difficult for Buyers. Although, things may start to slow down! Expected interest rates increases in the future can mean fewer buyers. We still anticipate more inventory increases.

DEMAND IS STILL THERE!

Mortgage interest rates reached almost 8% this month. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are becoming more common again. The number of days properties are staying on the market is averaging 46 days. The demand remains high for properties under $500,000. There are no listings under $500,000. The low inventory at entry-level, higher interest rates, and homeowner insurance costs make it difficult for many first-time Buyers. No properties are priced between $400,000-$500,000; one (1) is priced between $500,000-$600,000; two (2) are priced between $600,000-$700,000; three (3) are priced between $700,000-$800,000; two (2) are priced between $800,000-$900,000; four (4) are priced between $900,000-$1,000,000; three (3) between $1-2 million; and one (1) is listed for over $2 million.

SELLERS, THIS IS THE MOMENT TO PRICE IT RIGHT!
Increasing Inventory + Increasing Interest Rates = Less Demand.

During the period of October 13, 2023 through October 20, 2023, there were reported 1 new listing, 4 closed sales, 2 pending sales, 1 active with contract, 2 expired listings, 1 cancelled listing, 1 temp off market, 2 price reductions, and 0 price increases.

HOW DOES YOUR HOUSE COMPARE?

The table below shows the current status of the Miami Springs/VG real estate market as of Friday, October 20, 2023. All closed sales are within the last 90 days.

*Disclaimer: The data relating to real estate displayed on this website and the chart above comes from the Miami Board of Realtors MLS. All listing information is deemed reliable but not guaranteed and can be independently verified.

 A complete list of all the properties for sale in Miami Springs or any other area of 

Miami-Dade County can be sent to you on regular basis. 

Request it at:  charlie@leonardrealestategroup.com

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