Tag: Interest Rates
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Housing market stalls as rates remain stubborn, prices hold
The U.S. housing market struggled to gain traction last year, as high mortgage rates and a lack of inventory kept both buyers and sellers primarily on the sidelines. Despite brief flashes of activity, the year was defined by hesitation and affordability pressures that froze movement across much of the market. Mortgage rates fall slightly, still… Read More
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Potential rate cuts could impact year-end market activity
As of August 2024, mortgage rates are holding relatively steady, with the average 30-year fixed-rate mortgage hovering around 6.5%, according to Freddie Mac. This steadiness comes as the Federal Reserve signals potential interest rate cuts in response to cooling inflation and a slowing job market. Analysts predict that the Fed might begin cutting rates as… Read More
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Home prices in the Twin Cities soften, supply remains scarce
According to new data from Minneapolis Area Realtors and St. Paul Area Association of Realtors, since last summer, housing prices have dropped 3.1% to a median sales price of $396,100. This is the largest annual decrease since December 2011. In the Twin Cities area, prices decreased significantly during April and May. However, in June, they… Read More
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Federal Reserve raises rates, suggests a pause in hikes
Throughout much of the spring, the housing market slowed to a pace not seen since before the pandemic began. Buyers have continued to pause their home searches due to overall economic uncertainties and continued increases in interest rates. The Federal Reserve began raising rates last year in an attempt to put pressure on the overheated… Read More
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Home Price Growth Stagnates as Rates Dampen Market Activity
Higher mortgage rates and overall affordability woes are leading to drop off in activity in the Twin Cities housing market on both the buyer and seller ends of the spectrum. Consequently, the median home price in the metro area saw a minute 0.6 percent growth to $342,000 in February. Moreover, the overall housing market is… Read More
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Despite Headwinds, Builder Confidence Grows in February
Homebuilder sentiment rose for the second consecutive month, according to the latest report from the National Association of Homebuilders. Builder confidence in the market increased seven points in February to 42 – the second strongest reading since September 2022. This latest report, driven by softening mortgage rates and increasing demand for inventory, comes despite rising… Read More
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Higher mortgage rates sidelined buyers in 2022
According to new data from Minneapolis Area REALTORS® and the St. Paul Area Association of REALTORS®, the Twin Cities housing market last year was a tale of two markets. The first half of 2022 reflected much of the all-out frenzied feeling of the previous year and a half. Fierce and competitive buyer activity with multiple… Read More
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Fed raises rates by 75 basis points
In its continued effort to fight inflation, the Federal Reserve raised the federal funds target rate another 75 basis points mid-September. This is the third consecutive increase of 75 basis points. The large hikes are sending shockwaves through the financial markets and the overall economy. Federal Reserve officials have now hinted at plans to continue… Read More
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Housing inventory remains low even as housing market shifts
Across the country rising mortgage rates and inflation have had a stifling impact on the housing market. It is no surprise when considering that from the start of the year, mortgage rates have more than doubled, increasing from 3% in January to rates now over 6% this fall. Permits for new single-family homes have fallen… Read More
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Millennials want to own homes, but affordability stands in the way
Rising interest rates, coupled with an already tight and competitive market, are impacting purchasing power of would-be homebuyers. Consequently, the housing market is starting to see a shift in who is buying homes — especially in the millennial age group. Millennials are now the largest generation of potential homebuyers, but this age group is becoming… Read More
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