The housing market experienced a significant rebound in September after two months of consecutive declines. Many first-time buyers entered the market, suggesting a pent-up demand over the past several months in spite of constrained inventory levels. Affordable mortgage rates and healthy job growth contributed to these gains, as well as median home prices continuing their downward trend.
Interest Rates
According to Freddie Mac, 30-year fixed rates increased from 3.48 percent to 3.52 percent in September. Despite these increases, interest rates remain near all-time lows, although financial analysts suspect that the Federal Reserve may institute an increase soon.
Home Sales
The National Association of REALTORS® reported home sales at a seasonally adjusted annual rate of 5.47 million homes during the month of September. This was an increase of 3.2 percent from August, and an increase of 0.6 percent from September of last year.
Home Prices
The median home price decreased to $234,200 in September, which was down 2.4 percent from August and up 5.6 percent from September of last year. The median home price has increased by nearly $12,500 in the past year alone.
Inventory
There was a 4.5-month supply of housing inventory in September, which was a 2.2 percent decrease from August. The total number of homes for sale decreased by 4.3 percent compared to September of last year.
