If anything can be said about the current state of the real estate market, it’s that change is coming. Over the past two years, the pandemic has kept US mortgage rates extremely low, with rates falling below 3% at certain points. Those historically low mortgage rates has made it much cheaper for buyers to borrow money to buy a home, despite soaring home purchase prices in markets across the country.
This trend has now changed course. Since the week of February 11, 30-year fixed rate mortgage rates have been exceeded 4% for the first time since 2019. It’s not only a jump from the previous week, when rates hovered around 3.83%, but it’s also an unfortunate milestone for borrowers looking to buy homes at record rates. This rate change could also have a significant impact on other segments of the market, from refinancing loans to mortgage application rates, over time.
Nor is it the only significant change in the real estate market that has occurred this week. Not only are buyers facing rising interest rates, but home prices also continue to soar. Right now, homebuyers are currently facing one of the most expensive housing markets in history and, in turn, the average size of purchase loans has increased. The average purchase loan size for conventional loans new record of $453,000. The higher average mortgage is a clear sign that homebuyers are borrowing larger sums to buy homes in this expensive market.
To help you stay up to date with what’s happening in the housing market, the real estate platform ZeroDown has compiled a weekly report on the Toledo real estate market using data from red fin. Housing Market Stats presents data for the four weeks ending January 30, 2022. Metros with more than 50 homes sold during the period were considered for metro-level rankings for each statistic.