Mortgage Rates Are On The Rise

By Helen Adams Realty - May 13, 2022

Canopy Realtor® Association Market Updates

Reprinted from April 2022 CRRA Monthly Indicators.

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.

New Listings were down in the Charlotte region by 1.5 percent to 5,744. Pending Sales decreased 4.0 percent to 4,993. Inventory shrank 25.5 percent to 3,168.

Prices moved higher as Median Sales Price was up 20.6 percent to $380,000. Months Supply of Homes for Sale was down 12.5 percent to 0.7., indicating that demand increased relative to supply.

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.

A Closer Look