NVBR Market Reports are sponsored
by the North Country Federal Credit Union
Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.
New Listings decreased 16.6 percent for single-family homes but increased 19.6 percent for townhouse-condo properties. Pending Sales increased 21.1 percent for single-family homes and 18.0 percent for townhouse-condo properties. Inventory decreased 62.5 percent for single-family homes and 66.1 percent for townhouse-condo properties.
The Median Sales Price was up 20.3 percent to $329,000 for single-family homes and 7.0 percent to $264,000 for townhouse-condo properties. Days on Market decreased 39.8 percent for single-family homes and 48.6 percent for townhouse-condo properties. Months Supply of Inventory decreased 63.0 percent for single-family homes and 66.7 percent for townhouse-condo properties.
For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.