Market Report | 11/22 — 208 Market Real Estate

Have you heard the news? 📉Interest Rates have had a massive drop this month! From the high of 7.2% to 6.62%. Jumbo is right around 6%, Conventional 6.62%, and VA 6.15% (Source: Mortgage News Daily).

💥Why the rate drop? —> Consumer Inflation Cooled

Thanks to better-than-expected inflation numbers, the average rate on a 30-year fixed-rate mortgage dropped to 6.61% the week of November 17th, which was the biggest weekly decline in roughly 40 years.

That's an increase of 9.7% year-over-year. Buyers who purchased in recent months faced larger monthly mortgage payments due to higher mortgage interest rates and home prices, which has had a cooling effect on the demand for housing.

Homes that closed last month spent an average of 25 days on the market before going under contract, compared to 11 days in November 2021.

With the continued downtick in inventory, the months supply of inventory in November sat at 1.9 months, meaning, if no additional homes were listed, the supply of homes would run out in less than two months. A "balanced" market is typically 6 months of supply.