Mortgage interest rates ticked a bit higher in February but remained below their February 2020 levels. Interest rates may rise a bit further in the coming weeks. According to Freddie Mac Chief Economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3% range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates impact affordability.
New Listings in the Milwaukee region decreased 33.8% to 1,157. Closed Sales decreased by 5.9% to 957. Inventory levels fell 15.7% to 2,242 units.
Prices continued to gain traction. The Median Sales Price increased 14.1% to $249,000. Days on Market was down 26% to 37 days. Sellers were encouraged as Months Supply of Inventory was down 12.5% to 1.4 months.
For homeowners currently struggling due to the COVID-19 pandemic, government agencies are helping those in need. The Federal Housing Finance Agency will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.
All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by ShowingTime. This article’s views and opinions are those of the authors and should reflect only on trends that affect real estate economics.