Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.
New Listings were down 24.3 percent for single family homes and 16.7 percent for Condo/TIC/Coop properties. Pending Sales increased 42.4 percent for single family homes and 51.9 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 3.2 percent to $1,700,000 for single family homes but decreased 4.5 percent to $1,217,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 28.6 percent for single family units but was up 25.0 percent for Condo/TIC/Coop units.
For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.
Please note: this data is for Feb. 2021