Where are homes affordable in the current market?
According to recent data, almost 57% of all available inventory in the country is located in one region. However, it’s not the West and it’s not the Northeast.
Housing markets in the South have more than half of the homes for sale currently listed. The southern housing market also generated the most new listings out of any region in the country with a monthly increase of 19.7% in April 2024.
However, homes in the $200k-to-$350k range grew by 41% when comparing year-over-year data for April 2024, and the South is driving a lot of the affordable listings.
Metros that have shown the greatest inventory growth in April 2024 were located in some of the larger Florida metro areas. Tampa saw a 69.5% increase in listings. Orlando was up 64.2%, and Jacksonville saw a 59.1% increase in available listings last month.
Where were mortgage rates the day after the Fed?
The national average rate for a 30-year, fixed-rate mortgage ended Thursday down 0.04% to 7.37%*. The bond market saw continued positive momentum, and that sent mortgage rates slightly lower.
The next key data point is today’s jobs data. The market will likely want to see cool, but not freezing, jobs data to maintain the momentum into the weekend.
Are ARMs more popular in the current market?
A recent article from Yahoo! Finance showed that mortgage applications for adjustable-rate mortgages (ARMs) accounted for almost 8% of total applications for the week of April 26th. The increase in ARM applications came as overall applications for mortgages were down for the week.
When asked about the change in buyer behavior, Eric Davis, a sales adviser at D.R. Horton, stated, “People are looking for a payment [within their budget]. A lot of people are very budget conscious now more than ever. For us, that means finding them a perfect blend of how we can fit a floorplan to get them the right payment. Is it going to take more seller concessions? More down? Financing options?”
Homebuyers that are looking for potential savings on their mortgage rate may want to consider an adjustable-rate mortgage, but they do come with risks. If rates go up over time, the rate on an ARM would also go up. Make sure to discuss all your options with a mortgage professional before taking the next steps.
However, if you’re looking for additional information on adjustable-rate mortgages, you can always get more details from the experts at Guaranteed Rate!
* National average rates accurate as of 5/2/24 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
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