Northeast San Antonio | Lower Mortgage Rates Exciting News
Here in northeast San Antonio as mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed on the market longer. That meant some homeowners decided to take a timeout on selling.
Now, however, rates are beginning to come down—and buyers are starting to reenter the market. The latest data from the Mortgage Bankers Association (MBA) shows mortgage applications increased last week by 7% compared to the week before.
Here in Northeast San Antonio The latest interest rates have been fluctuating in the 6.125%-6.25% range.
Northeast San Antonio January home sales 2023 vs 2022
Locally we saw part of this reentry to the northeast San Antonio market in December of 2022 as prices finished higher. However, a key stat to keep an eye on moving forward in Northeast San Antonio is that the number of pending sales has fallen from 343 Jan 2022 to 188 this year. Closed home sales have moved from 285 in January 2022 to 134 this January.
For home buyers, this is all welcome news even though the supply levels are still historically low at about 2.8 months’ worth of homes available.
So, if you’ve been planning to sell your house but you’re unsure if there will be anyone to buy it, this shift in the market could be your chance. Here’s what experts say about buyers returning to the market as we approach spring.
Mike Fratantoni, SVP and Chief Economist, MBA:
“Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
Thomas LaSalvia, Senior Economist, Moody’s Analytics:
“We expect the labor market to remain robust, wages to continue to rise—maybe not at the pace that they did during the pandemic, but that will open up some opportunity for folks to enter homeownership as interest rates stabilize a bit.”
Sam Khater, Chief Economist, Freddie Mac:
“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market.”
Bottom Line
If you’ve been thinking about making a move, now’s the time to get your house ready to sell. Let’s connect so you can learn about buyer demand in our area and the best time to put your house on the market.