The Federal Reserve announced this week that while it would keep its benchmark rate near zero, it was preparing to taper stimulus efforts put in place to combat the pandemic, including winding down its bond purchase program. Experts expect interest rates on mortgages, credit cards, car loans, and other consumer loans will rise as the Fed tapers its bond purchases. Looking long-term, The National Association of REALTORS® predicts the 30-year fixed-rate mortgage to rise to near 3.5% by mid-2022, about 60 basis points higher than they are today.
In the Twin Cities region, for the week ending September 25:
- New Listings decreased 15.1% to 1,556
- Pending Sales decreased 6.9% to 1,377
- Inventory decreased 14.3% to 8,451
For the month of August:
- Median Sales Price increased 11.1% to $350,000
- Days on Market decreased 43.6% to 22
- Percent of Original List Price Received increased 2.1% to 102.4%
- Months Supply of Homes For Sale decreased 26.3% to 1.4
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.