Freddie Mac reported that the average 30-year fixed-rate mortgage dropped to 3.64% this week, the lowest level in three months and down from 4.45% one year ago. Additionally, conforming and FHA loan limits have increased for 2020. Increased loan limits coupled with low rates, will give more buyers the ability to purchase a wider range of properties. These changes, along with the continued strong labor market, is likely to spur buyer demand even in the face of a constrained supply of homes for sale throughout much of the country.
In the Twin Cities region, for the week ending January 11:
• New Listings decreased 4.9% to 998
• Pending Sales decreased 12.2% to 592
• Inventory decreased 15.2% to 7,624
For the month of December:
• Median Sales Price increased 8.0% to $278,600
• Days on Market decreased 1.8% to 56
• Percent of Original List Price Received increased 0.4% to 97.2%
• Months Supply of Homes For Sale decreased 21.1% to 1.5
