Weekly Real Estate Monitor for April 8-12

The latest inflation figures, which rose to 3.5%, have halted the downward trend in inflation which also translated to an increase in interest rates. Despite this week's?higher Consumer Price Index (CPI) reading and a surge in the 10-year treasury yield (the highest since November), this week rates started the week at 7.11%, peaked at 7.37% mid-week, and?at 7.30% as of today.?Expectations for the coming weeks are that mortgage interest rates are likely to continue to?rise, which is disappointing news for prospective Spring home buyers.

While first-time buyers lack housing equity to aid in their home purchase, those who have accrued housing equity through home price appreciation currently benefit in today's housing market. Interestingly, one-third of recent home buyers did not finance their home purchases last month — the highest share in a decade, so for these buyers, interest rates may hold less sway over their purchase decisions.

Mortgage Borrowers Accelerating Pace of Refinancing

Last week, conforming 30-year fixed-rate mortgages (FRM) once again surpassed the 7 percent mark, yet mortgage application activity managed to eke out a marginal increase. The Mortgage Bankers Association (MBA) reported that its Market Composite Index, which gauges application volume, rose by 0.1% on a seasonally adjusted basis. On an unadjusted basis, the Index saw a 0.2% uptick compared to the previous week.

However, this slight uptick was solely attributable to a 10.0% surge in refinancing activity (up 4.0% year-over-year), while the volume of purchase mortgages dipped by 5.0% on a seasonally adjusted basis. Refinancing applications constituted 33.3% of total applications during the week, compared to 30.3% the prior week.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, remarked, “Mortgage rates climbed higher last week as several Federal Reserve officials reiterated a cautious stance on rate cuts. Inflation persists above the Fed’s target, and the broader economy displays resilience. Unexpectedly robust employment data released last week further fueled upward pressure on rates. The 30-year fixed rate reached 7.01%, its highest level in over a month. Purchase applications dropped by almost five percent, reaching their lowest level since the end of February, while refinance applications saw a 10% increase, notably driven by VA refinance applications.”

Weekly Highlights:

Showings surpassed last year's numbers.

In the week concluding on April 7th, there was a?38.7% increase in showings?compared to the corresponding week last year. Showing activity surged by 19.7% from the previous week, indicating heightened engagement as we transition into spring.

The median list price achieves a new all-time high.

The median list price increased 7.5% compared to the corresponding week last year and setting a new record high for week-to-week growth.?It's important to note, the median list price is the middle value in a list of home prices arranged from lowest to highest, representing the price at which half of the homes in a particular area are listed for sale above and half below. It's a measure used in real estate to gauge the typical price range of homes available in a given market.

Supply shows signs of growth.?

For the second month in a row, this week saw an increase of 13.9% in?active listings?year-over-year, which is another promising gain over last year.

Daily Rate Index

Want to review sales data for your area??Check out our Market Snapshots?HERE

Finding this newsletter informative, have feedback or need guidance in buying and/or selling a home? Text?'LKRE'?to?908.680.0902?and don’t forget to visit us at?www.MakingNJHome.com