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Mortgage Interest Rates Continue To Hold At Extremely Favorable Levels

Monday, August 30, 2021
by Galand Haas

Good Monday Morning!

A bright spot in the Real Estate world is that mortgage interest rates continue to hold at extremely favorable levels.  For home buyers this is huge as our local housing market seems to be shifting with more inventory available and what seems to be the beginning of prices coming down.  Here is a report on current mortgage rates.

Mortgage rates continue to hover at all-time lows, marking the ninth consecutive week that rates have averaged below 3%.

“The tug-of-war between the economic recovery and rising COVID-19 cases has left mortgage rates moving sideways over the last few weeks,” said Sam Khater, Freddie Mac’s chief economist. “Overall, rates continue to be low, with a window of opportunity for those who did not refinance under 3%. From a homebuyer perspective, purchase application demand is improving, but the major obstacle to higher home sales remains very low inventory for consumers to purchase.”

Additional housing inventories may be on the horizon, however. The National Association of REALTORS® reported this week that more listings arrived on the market in July, a trend that could continue into the fall months. Housing inventories increased 7.3% in July compared to June.

Low mortgage rates likely will remain a strong pull for potential home buyers. A rush to lock in a low rate may continue to propel the housing market. NAR predicts the 30-year fixed-rate mortgage to rise, expecting it to average 3.2% from October through December.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 26:

  • · 30-year fixed-rate mortgages: averaged 2.87%, with an average 0.6 point, up slightly from last week’s 2.86% average. A year ago, 30-year rates averaged 2.91%.
  • · 15-year fixed-rate mortgages: averaged 2.17%, with an average 0.6 point, rising slightly from last week’s 2.16% average. A year ago, 15-year rates averaged 2.46%.
  • · 5-year hybrid adjustable-rate mortgages: averaged 2.42%, with an average 0.2 point, falling slightly from last week’s 2.43% average. A year ago, 5-year ARMs averaged 2.91%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3403 Timberline Dr, Eugene, OR 

Price: $599,900    Beds: 4    Baths: 3.0    Sq Ft: 2542

Beautifully updated SW Eugene home on a gorgeous landscaped lot. An abundance of windows & vaulted ceilings allow for natural light throughout the day. Kitchen has granite counters & newer stainless steel appliances. Large master suite with w/in clo...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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The Real Estate Market Might Be Shifting

Monday, August 23, 2021
by Galand Haas

Good Monday Morning!

Just when we all settle in to the Real Estate market and think that it's not going to change, it decides to fool us all.  There is not any fan fare about this, but I really feel that we are in the midst of a Real Estate market shift.  Homes that were selling for well above full price in a matter of days with multiple offers are now sitting and nobody is wanting to look.  Price reductions have become the norm as the number of buyers entering the market seems to be dwindling.  I have been through multiple market shifts in the past and this feels like what we expereienced when the shift began.  As I stated recently, these shifts are not suttle and change happens as fast as hitting the light switch.  How long and how deep this market shift becomes is anyones guess, but you can bet we won't be going back to the market we had in May and June of this year any time soon.  Also, the new home market is changing and here is an article from "Realtor.com" that addresses those changes.

The numbers: Building activity for new homes slumped in July, likely reflecting the continued supply constraints that construction firms faced nationwide.

U.S. home builders started construction on homes at a seasonally-adjusted annual rate of 1.53 million in July, representing a 7% decrease from the June’s upwardly-revised figure, the U.S. Census Bureau reported Wednesday.

Compared with July 2020, housing starts were up 2.5%; however, such year-over-year comparisons are still skewed by the effects of the onset of the COVID-19 pandemic.

Permitting for new homes occurred at a seasonally-adjusted annual rate of 1.64 million, up 2.6% from June and 6% from a year ago.

The figures for housing starts and permits are expressed as annual rates, meaning that’s the full amount of homes that would be built or permitted if builders maintained this pace of construction for a full year. Economists polled by MarketWatch had expected housing starts to occur at a pace of 1.59 million and building permits to come in at a pace of 1.61 million.

What happened: Housing starts declined for both single-family and multifamily projects. The South was the only region where new construction activity increased overall, with a 2.1% uptick. Meanwhile, in the Northeast, there was a 49% decline in housing starts on a monthly basis.

The increase in permitting was driven by an 11% jump in the number of multifamily buildings authorized, as the number of single-family homes that were permitted actually declined on a monthly basis. There was a high degree of regional variation in building permits, with the West seeing a 13% gain and the South seeing a 1.9% drop on a monthly basis.

There was also a 2.6% increase in the number of approved projects where construction had yet to begin.

The big picture: To some extent, the decline in housing starts might be a reflection of construction companies needing to pump the brakes a bit to match the pace of building activity to the availability of supplies and labor. The latest print of the home-builder confidence index from the National Association of Home Builders showed declines in the gauges that measure attitudes toward the state of present sales and foot traffic, but some analysts weren’t too negative on that news.

“We believe the slowdown in present sales is still more driven by supply constraints as builders have fewer homes to sell after robust demand and/or are intentionally slowing sales to match demand with production capacity,” analysts at investment bank BTIG wrote in a research note.

The pickup in permitting, meanwhile, is a positive sign in light of other indicators that suggest home buyers are souring on the housing market. For weeks ago, the number of mortgage applications submitted for loans to purchase homes has declined, according to data from the Mortgage Bankers Association.

“The big questions now are how much of the recent trends we are seeing in home sales and mortgage applications for home purchase are fundamental in nature, how much are just temporary corrections/consolidations, and how much are due to seasonal adjustment difficulties given that pandemic-related trends have been more important in the housing industry than normal seasonal patterns,” Joshua Shapiro, chief U.S. economist at financial consulting firm Maria Fiorini Ramirez, wrote in a research note Wednesday morning.

Shapiro argues that while the housing market is still going to be on relatively solid ground, it “is not going to be as red-hot going forward as it had been, nor is it going to continue to slide for very long like it has recently.”

What they’re saying: “Although residential construction has stepped back from March’s 15-year high, amid supply issues and elevated material costs, it continues to hold above pre-pandemic levels,” Michael Gregory, deputy chief economist at BMO Capital Markets, wrote in a research note.

“Builders pulled back on housing starts, wary of overcommitting on final new home prices in the face of volatile costs for land, materials and labor. However, permit applications and completed homes registered gains, a sign that expectations for the next months remain upbeat,” said Realtor.com senior economist George Ratiu.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

2941 Edgewater Dr, Eugene, OR 

Price: $1,150,000    Beds: 3    Baths: 4.0    Sq Ft: 3397

Don't miss this elegant 1-level executive home in a quiet cul-de-sac. Large covered patio w/ infrared ceiling heat & a gas fire table overlook a pond & waterfall making it a relaxing & private retreat. Spacious indoor/outdoor entertaining w/ Sonos s...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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The Seller's Market Continues

Monday, August 16, 2021
by Galand Haas

Good Monday Morning!

Here is what took place in the Eugene and Springfield area housing market for the month of July 2021.  The strong sellers market continues and so does the increase in home prices.  Mortgage interest rates also continue to be at historic low levels.  It is certainly a great time to sell and home and with our current low mortgage interest rates, it remains an great time to buy a home.  I do beleive that change is on the horizon as I am beginning to see the signs of a softening housing market here.  The next couple of month will tell the story!  Here are the July numbers.

Residential Highlights

New listings (612) increased 8.1% from the 566 listed in July 2020, and decreased 3.3% from the 633 listed in June 2021.

Pending sales (518) decreased 10.5% from the 579 offers accepted in July 2020, and decreased 0.6% from the 521 offers accepted in June 2021.

Closed sales (499) decreased 7.6% from the 540 closings in July 2020, and decreased 3.3% from the 516 closings in June 2021.

Inventory and Market Time

Inventory increased to 0.8 months in July. Total market time increased to 20 days.

Year-To-Date Summary

Comparing the first seven months of 2021 to the same period in 2020, new listings (3,624) increased 6.2%, pending sales (3,099) increased 5.6%, and closed sales (2,803) increased 11.5%.

Average and Median Sale Prices

Comparing 2021 to 2020 through July, the average sale price has increased 20.7% from $349,700 to $422,000. In the same comparison, the median sale price has increased 20.0% from $325,000 to $390,000.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3403 Timberline Dr, Eugene, OR 

Price: $625,000    Beds: 4    Baths: 3.0    Sq Ft: 2542

Beautifully updated SW Eugene home on a gorgeous landscaped lot. An abundance of windows & vaulted ceilings allow for natural light throughout the day. Kitchen has granite counters & newer stainless steel appliances. Large master suite with w/in clo...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Mortgage Interest Rates Decline Again!!

Monday, August 9, 2021
by Galand Haas

Good Monday Morning!

Just when we think that the low mortgage interest rates have met their doom, they decline again.  Mortgage interest rates are on the drop and this is helping home buyers cope with the inflated home prices.  I am not sure as to how long the new lower rates will be with us, but now would be a good time to take advantage of this situation.  Here is what is happening with mortgage interest rates last week.

New fears over the fast-spreading COVID-19 delta variant are moving mortgage rates lower. The 30-year fixed-rate mortgage spent another week under 3%.

“With global uncertainty surrounding the delta variant of COVID-19, we saw 10-year Treasury yields drift lower and consequently mortgage rates followed suit,” said Sam Khater, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage dipped back to where it stood at the beginning of 2021, and the 15-year fixed remained at its historic low. This bodes well for those still looking to refinance, renovate, or even purchase a new home.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 5:

  • 30-year fixed-rate mortgages: averaged 2.77%, with an average 0.6 point, dropping from last week’s 2.80% average. Last year at this time, 30-year rates averaged 2.88%.
  • 15-year fixed-rate mortgages: averaged 2.10%, with an average 0.6 point, unchanged from its record low last week. A year ago, 15-year rates averaged 2.44%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.40%, with an average 0.4 point, dropping from last week’s 2.45% average. A year ago, 5-year ARMs averaged 2.90%.

Freddie Mac reports average commitment rates along with average fees and points to better reflect the total upfront cost of obtaining a mortgage.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3403 Timberline Dr, Eugene, OR 

Price: $625,000    Beds: 4    Baths: 3.0    Sq Ft: 2542

Beautifully updated SW Eugene home on a gorgeous landscaped lot. An abundance of windows & vaulted ceilings allow for natural light throughout the day. Kitchen has granite counters & newer stainless steel appliances. Large master suite with w/in clo...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Add Comment

Mortgage Interest Rates Are Still Low

Monday, August 2, 2021
by Galand Haas

Good Monday Morning!

If you think that mortgage interest rates have taken off and are less attractive right now.  Think again!  Mortgage interest rates remain attractive and at extremely low rates.  I know, this has contributed to fueling the national housing market and home prices are very high.  But, when rates are as low as they are today, it still gives you buying power.  There is no guarantee that we are going to see any substantial reduction in home prices any time soon.  The reality is that right now is still a great time to purchasse a home.  The process may be a bit more difficult, but years from now when rates have increased you will be very happy that you made the decision to buy when you did.  The following is an update on current mortgage rates.

Borrowers can still take advantage of some of the lowest mortgage rates of all time. For the fifth consecutive week, the 30-year fixed-rate mortgage has remained below 3%. Also, the 15-year fixed-rate mortgage averaged 2.10% this week, an all-time low, Freddie Mac reported.

“As the economy works to get back to its pre-pandemic self, the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time,” said Sam Khater, Freddie Mac’s chief economist.

In 2019, mortgage rates averaged 3.94%, 4.54% in 2018, and more than 6% in 2008. That said, “expect mortgage rates to modestly rise in the following months as most of the economic indicators will start to stabilize,” Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, said on the association’s Economists’ Outlook blog. Lawrence Yun, NAR’s chief economist, is predicting the 30-year fixed-rate mortgage to increase to 3.3% by the end of the year and average 3.6% in 2022.

Freddie Mac reports the following national averages with mortgage rates for the week ending July 29:

  • 30-year fixed-rate mortgages: averaged 2.80%, with an average 0.7 point, rising from last week’s 2.78% average. Last year at this time, 30-year rates averaged 2.99%.
  • 15-year fixed-rate mortgages: averaged 2.10%, with an average 0.7 point, dropping from last week’s 2.12% average. A year ago, 15-year rates averaged 2.51%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.45%, with an average 0.3 point, falling from last week’s 2.49% average. A year ago, 5-year ARMs averaged 2.94%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

1113 Stevi Shay Ln, Eugene, OR 

Price: $335,000    Beds: 3    Baths: 2.5    Sq Ft: 1620

This cute cottage style home is in a convenient River Road location. The vaulted & high ceilings and ample windows make it feel light & airy throughout. Main level master suite and laundry room. 3 bedrooms plus a loft and 2.5 bathrooms are well laid...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Haas Real Estate Team
Keller Williams Realty Eugene and Springfield
2645 Suzanne Way Suite 2A
Eugene OR 97408
Direct: (541) 349-2620
Fax: 541-687-6411
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