Where are mortgage rates at after Labor Day?

Aerial View of Huntsville, Alabama | mortgage rate news

Where are mortgage rates at as of Thursday?

The national average for a 30-year, fixed rate mortgage ended trading on Thursday down 0.04% at 7.29%*. Thursday was the first day since Labor Day that the national average closed lower than it started.

Strong economic data on Wednesday caused weakness in the bond market, and that pushed the national average for a 30-year, fixed rate mortgage back into the 7.20 – 7.30 range.

The market may get additional guidance from the Fed Presidents speaking on Friday. However, there won’t be new data until inflation metrics are released next week.

Which markets are seeing the quickest cuts in prices?

While several areas of the country are still seeing growth in home prices, others are seeing sellers starting to cut prices to get sales to move quicker. A recent report from Realtor.com detailed the 10 metro areas that are seeing the deepest cuts in home prices right now.

According to Realtor.com chief economist, Danielle Hale, “What we’re seeing in the housing market is a reversal of what we saw in the [COVID-19] pandemic,” says Hale. “Areas that attracted a lot of remote workers and saw prices skyrocket are seeing trends slow.”

Which metro came in first in sellers looking to cut prices? Huntsville, AL. According to data, the cuts are driven by builders. New home sales have boosted inventory by 31.5% year-over-year in July 2023, and with more homes for sale, builders are looking to lower prices to get them sold.

The Sun Belt was well-represented on the list with Lafayette, LA, Augusta, GA, and Memphis, TN making the list. Fort Collins, CO was the only metro area listed from the Mountain West region, and Fort Wayne, IN was the farthest north.

Where are luxury homes selling the fastest? The slowest?

While California may be home to some of the more expensive metro areas in the country, it’s also where luxury homes are moving the quickest in the country right now according to recent reports. The report defines a luxury home as a home selling in the top 10% of the market.

Silicon Valley, home to San Jose, Sunnyvale, and Santa Clara, has the fastest-selling luxury homes in the U.S. The median luxury home in the San Francisco-Sunnyvale-Santa Clara metro areas is sold in 39 days on average. That’s actually two days faster on average than last year.

The East Coast is seeing a slowdown in the luxury market. In particular the Stamford, CT metro and the Torrington, CT metro area are seeing luxury homes sit on the market for as long as 114 days. Both areas have seen the pandemic-led rush for homes outside of the major metro areas in the East slowing down considerably as companies ask workers to return to the office.

* National average rates accurate as of 9/8/23 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.

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