GLASTONBURY MORTGAGE RATES SETTLING DOWN - Mortgage demand is up for the 3rd week in a row
GLASTONBURY MARKET UPDATE
MORTGAGE RATES SETTLING DOWN - Mortgage demand is up for the 3rd week in a row.
Has the FED finally succeeding in getting what they want? It appears so.
In the past year, the FED has come out on several occasions and expressed a clear opinion they did not like what was happening with the housing market in Q1 of 2022. Not one bit. During the June FED meeting, FED Chairman, J. Powell, said housing needed a "reset". Seems that "reset" was a push to get mortgage rates up to a point where buyers would feel the pain and slow down the frenzy. For the majority of the country, that pain point was over 7%.
Since as far back as 1971, mortgage rates tend to align with the 10-year U.S. Treasury yield. The result, when bond yields fall, mortgage rates typically go down. So when FED Chairman, J. Powell, recently and said “..It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down.." that statement alone was enough to bring the Treasury yields down. Now we are seeing rates hovering at about 6.375% with 20% down and a good credit score.
So what does all this mean for our local Glastonbury Market? 7% didn't stop all our local buyers. We were still seeing multiple offers. However, we are seeing more buyer-favorable contingencies written in offers. Now that rates have dropped, we are seeing buyers rally and come back into the market to see what is on MLS for sale. That sounds great right? Kind of....we still have a lack of homes to meet these demands. Right now there are just 41 homes - same 16 of which are new construction leaving 25 single-family homes on the market.
Even if you adjust for a normal market's seasonality of inventory, that is a very low number which is why were are still holding on our values. #glastonburyct #williamraveisrealestate #ctrealestate #lindaedelwich
At the end of every week, I have been breaking down the market stats (Instagram & Facebook @LindaEdelwichRealtor). I also explain what this all means for our LOCAL Glastonbury market.
Do you have a specific question about the state of the market? Feel free to email me at [email protected] or send me a text at 860-818-3610.