What does housing inventory look like in the US right now?
While mortgage applications have been up and down to start the year, the current housing inventory is still fairly tight in the US, but there are positive signs. Of the 400 largest markets in the US, 370 have seen active listings jump between January 2022 and January 2023. Nationally, total inventory has increased from 378,189 listings in January 2022 to 625,875 in January 2023.
While the increase in inventory does signal increased activity, the housing market still hasn’t shifted to a buyer’s market. Despite the increase, levels are still below pre-pandemic levels, and higher mortgage rates have kept a lot of buyers on the sidelines.
However, there are more options and we’re still well below the mortgage rate peak that occurred during the fall of 2022. This could be an opportunity to jump back into the market if you’re looking to find a new home in the Spring. If you want to show sellers and agents that you’re serious and shop with confidence, this could be a great time to get pre-approved.
Where are the most undervalued housing markets in the US?
US News & World Report looked into the top housing markets in the US, and worked out the most undervalued markets in the country. Markets on the West Coast, in the Sun Belt, and in the Northeast didn’t make the list. The most undervalued markets in the US to purchase a home were predominantly in the Midwest and near the East Coast. They found that Detroit was the most undervalued market in the country and other metro areas like Cleveland, St. Louis, and Philadelphia followed on the list.
For Detroit, the median monthly payment-to-income ratio for homeowners of 17.4% was less than half of the 36.6% national average.
How are mortgage rates after a volatile week in the market?
We’ve seen a week of correction and reversal for the mortgage market. We hit the lowest rates in more than four months last week, and then saw a quick reversal back up this week, followed by another correction. The market should calm down over the next few days as we wait on inflation data.
The national average for a 30-year, fixed-rate mortgage ended Thursday’s session at 6.45%*, up 0.03% compared to the previous day.
* National average rates accurate as of 2/9/23 from mortgageratenewsdaily.com and are not advertised rates from Guaranteed Rate.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
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