The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.
- Single Family Closed Sales were down 14.7 percent to 1,822.
- Townhouse-Condo Closed Sales were down 11.8 percent to 493.
- Adult Communities Closed Sales were down 3.9 percent to 49.
- Single Family Median Sales Price increased 7.4 percent to $510,000.
- Townhouse-Condo Median Sales Price increased 10.0 percent to $330,000.
- Adult Communities Median Sales Price increased 10.7 percent to $415,000.
Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.