Mortgage interest rates have risen sharply again over the last 30 days. The recent change will cost new borrowers over $59 per month for every $100,000 borrowed. Average U.S. interest rates for 30-year fixed rate mortgages were at 6.92% as of this week. Last month at this time, they were sitting at 6.02%.
In the short-term, history tells us we will likely see some level of reduced demand in our area due to Ian. That said, given how we avoided the worst of the storm when compared to our neighbors to the south, I expect that the hurricane reduction to be less than what we experienced post-Irma in 2017.
Ambience matters when getting the best price for your home, especially with the market shifting towards a balance of power between buyers and sellers. Here are some music suggestions from Florida Realtors.
Sarasota County market data from August isn’t that much different from what we are seeing in Manatee. Transaction volume is down year on year, and inventory is building. That said, it appears to have little impact on pricing as of yet. The law of supply and demand should alter that somewhat in the coming months. That said, the uncertainty surrounding the overall economy could take us a number of directions as we head into the peak real estate season in Florida.
While the number of new listings slowed down somewhat in August, inventory levels continued to rise. We are still moving towards a more balanced market, where sellers are no longer holding all the cards. Rising interest rates have yet to really have a material impact on pricing, but it sure feels like the meteoric rise we saw over the last 18 months is a thing of the past. With our peak transaction season rapidly approaching, market direction remains uncertain.