Eckington By The Numbers || Weekend 11.05.23

Taking a look at Eckington's data this week, the number of active listings dropped from 40 to 41, and there have been a total of 9 closings in the last 30 days. The average days on the market jumped from 37 to 49. As we head into the holiday season, I would expect the inventory to drop some and the days on the market to rise. Every year I tell buyers this is a great time to buy if you can stay focused. There is often less competition in the market.

Some good news for buyers and sellers is that the Federal Reserve (Fed) decided to hold rates steady at last Wednesday's meeting. We often get a lot of questions about how rates work, so here is a quick overview. The Fed's set interest rates have a significant influence on mortgage rates, but they are not directly tied to each other. Mortgage rates are primarily determined by the broader bond market and investors' perceptions of risk and return in the housing market. When the Fed raises or lowers its benchmark interest rate, it affects the overall cost of borrowing money in the economy, including banks' cost of funds. As a result, mortgage rates tend to move in the same general direction as the Fed's policy rate changes. However, they can be influenced by other factors like economic indicators, inflation expectations, and demand for mortgage-backed securities. So while Fed rates provide a crucial backdrop, mortgage rates can vary independently, often resulting in disparities between the two. This directly impacts buyers, as for every rate hike, it means less house a buyer can afford. This move dropped the 30-year average fixed rate from 7.88% last Friday to 7.38% this Friday. 

Here is a recnet article on the Fed's last meeting: https://www.reuters.com/markets/us/fed-poised-hold-rates-steady-despite-economys-bullish-tone-2023-11-01/

As of Friday, November 3, 2023, the current average interest rate for a 30-year fixed mortgage is 7.38%. *We source this data from Mortgage News Daily.