Since early March, median home sale prices haven’t exactly been setting record highs. On the contrary, rates have been decreasing steadily. The four-week period ending on July 25 remained flat, though it was still higher by 18% than the rate from July 2020.
Within the following four-week period, there were changes in the homebuying conditions more significant than in the past 10 years. These changes signify potential benefits for homebuyers. Even in the middle of the pandemic, conditions may continue to improve as time passes.
To summarize the data, here are some of the significant points for the housing market so far.
Takeaways on the Housing Market in the US
Since the start of the pandemic, there have been various changes to median home sales. The numbers have steadily and continuously been going up, but recent times have seen a break in the pattern.
Over the past year, the median home-sale prices have gone up by 18%. This means it amounted to $326,750, but recent events have proved this has changed.
In the four-week period that ended July 25, the rate decreased by 0.2%. This resulted in breaking five months of record home prices. Not only that, but in the four-week period ending June 27, newly listed homes’ asking prices had gone down by 1%. This is significant as the previous year had a 12% increase.
In addition, pending home sales went up 3%. This is the smallest percentage in a year-over-year increase since mid-2020. This percentage has since gone down 3% from the weeks that ended July 25th. A significant decrease happened too, as the home sales rate went down by 12% from its peak in 2021 during the period that ended May 30.
Listings have been at all-time highs, but this year’s market is experiencing a decline in pricing. As the rates have begun to decline halfway through the year, the prospects are looking well for buyers.
Additionally, newer listings for home sales have gone down by 0.2% compared to the previous year. The first decrease had concurred in March. Paired with that is the number of homes on the market, which has grown by 1.9% in the four weeks ending July 25. This has also happened in the previous two years.
Active listings decreased by 26% in February, which is considerably a smaller decline since late 2020. These went up by 13% from hitting their lowest in 2021 during the weeks of March.
As the numbers continue to go lower, there might be a few positive forecasts in the upcoming months. More homes will be sold, more will go on sale. Both home buyers and sellers will benefit from the way trends in home sales are headed.
Are Mortgage Rates Expected to Drop in 2021?
Mortgage applications during July in 2021 fell to 1.7% per week. This is the lowest they have gone since May in 2020. Currently, according to the August data, 30-year mortgage rates have decreased. They fell by 2.77%, which is the lowest they have been since the middle of February.
These lowered mortgage rates may not seem a lot, but they will strongly impact the market. Homes have been much pricier because of the pandemic. However, now buyers have the benefit of lower rates in mortgages. The hesitation some people have felt before buying homes will offer a much looser, slightly less competitive home-buying experience.
Mortgage rates can go down or go up. This is a big given. Current mortgage rates could go higher or lower. But this all depends on an individual’s credit score, lender, and plenty of other factors.
As seen from the data, mortgage rates have gone down little by little in the previous year. Even with the minor setbacks, things have gotten the slightest bit more loose for the housing market.
These numbers may stay steady, but any abrupt economic change could easily change this. Mortgage rates don’t tend to drop and impact significantly in the last few months of the year. If the virus worsens due to the variants present, this could also affect the market.
Any setback or minor accident can slow down the process of declining mortgage rates. As for the following year, mortgage rates will fluctuate, rising and falling. However, this is understandable due to the difficulties we face daily.
Will Mortgage Interest Rates Go Up in 2021?
The year has had plenty of jagged pathways in terms of mortgage and other factors. After experiencing rises in mortgage rates, the rates went down immediately. However, this change might come as they won't know how much these numbers, big or small, make a difference.
Mortgage interest rates have been reportedly lowering in 2021, but that could change. If you’re to buy any homes or properties, it is best if you start today. Over time, a gradual increase may occur, but it’s better to be safe now than feel regret in the future.
What Will Cause Mortgage Rates to Drop?
These mortgage drops are important decision makers in our lives. A simple change could change a person’s life, especially in the housing market.
Growing economies and environments can lead to a higher mortgage. Some people just cannot afford a mortgage, no matter how hard they try.
Either a singular factor or all the factors can contribute to the rise and fall of the rates. This is why a potential home buyer must monitor forecasts and summarizations.
Economic conditions in the US, as well as the world, have been rough. The reality shows that COVID-19 has dented the world’s overall system, which influenced mortgage pricing strongly. Bad economic problems and news are beneficial for buyers.
Inflation, origination costs, and economic conditions are the biggest. These three fully affect the motion of the market, if the rate has gone up or down.
Will It Be Cheaper to Buy a House in 2021?
There’s no clear indicator that mortgage rates will go up or go down. But the current situation is still great for those seeking out homes to buy.
It might not be cheaper to buy a house in 2021 as mortgage rates will possibly increase at a slow pace during this half of the year. Along with that, home selling prices will also hike up slowly. A house is a very big commitment, getting one requires the smartest decisions.
People say 2020 will have a stronger effect on the market. Although, 2021 has made a break in the trends of the mortgage rates. Buying a home right now might not be the best choice for you, but for some, it could be.
Listed homes are slowly being reserved and taken. Even homes sold at higher prices have seen improvement. The median amount it takes to sell a home is up to 16, a solid 20 days less than data from 2020.
The competition for home buying and selling will always be strict and heavy. However, these conditions are consistent. All it takes is a good eye and dedication, as well as a great Real Estate Agent like Nancy Braun of Showcase Realty to help reach conclusions.