For the third week in a row, interest rates have increased. This is the first time since April we’ve had three consecutive weeks of increases. Even with this news, overall purchase activity is still strong.
The current thirty-year fixed rate mortgage is at 3.78% with .5% in fees and points. That’s an increase of 3 basis points from last week.
Mortgage applications are up this week as opposed to last week, showing that the slight increases in interest rates have not deterred buyers.
In the News
The news this week is that real estate in Texas has shown a steady increase in prices for the third quarter this year. The Texas Realtors’ Texas Quarterly Housing Report showed Texas had an increase of 6.4% in homes sold compared to the third quarter of last year. Prices increased 4.3% to $245,000.
Real Estate Center Chief Economist Dr. Jim Gains stated in an article for RECON, “During the remainder of the year, we expect attractive interest rates to incentivize homebuyers. In addition, new-home construction will continue to pick up in markets such as Houston and Dallas, leading to an increase in housing inventory availability."
The number of active listings has also increased 3.5% from last year’s third quarter numbers, which is great for buyers since there’s been an ongoing strain on inventory.
On Tuesday the National Association of Realtors released their Pending Home Sales report for September and showed there was a 1.5% increase in properties under contract. NAR’s Chief Economist, Lawrence Yun made a great point in the press released when he stated, ““Even though home prices are rising faster than income, national buying power has increased by 6% because of better interest rates,”
Next week we’ll begin to get our numbers for October sales and we’ll be able to see if the projected positive outlook for sellers was shown in the data.
So to sum it up and answer the question, how’s the market? It’s still strong for sellers. Interest rates are ever-so-slightly increasing week over week but overall it has not affected buyer demand.
If you like hearing these stats and want more detailed data on your neighborhood, head over to CrestEdgeRealEstate.com/neighborhoods.
If you’re looking to buy or sell real estate in DFW, let’s talk.
Jennifer Shannon is a Texas real estate agent and broker, licensed since 2006.