Sunday, February 28, 2021 / by Christopher Barca
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Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but 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 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.
New Listings decreased 17.9 percent for Single Family homes but increased 16.1 percent for Condominium homes. Pending Sales increased 62.5 percent for Single Family homes and 76.3 percent for Condominium homes. Inventory decreased 58.6 percent for Single Family homes and 4.0 percent for Condominium homes.
Median Sales Price increased 19.8 percent to $895,000 for Single Family homes and 0.6 percent to $556,990 for Condominium homes. Days on Market decreased 12.0 percent for Single Family homes but increased 6.9 percent for Condominium homes. Months Supply of Inventory decreased 59.3 percent for Single Family homes but increased 10.3 percent for Condominium homes.
For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they 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.