Market Report - February 2021
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 were up 2.3 percent to 672. Pending Sales increased 34.6 percent to 723. Inventory shrank 67.4 percent to 702 units.
Prices moved higher as Median Sales Price was up 19.3 percent to $385,000. Days on Market decreased 16.1 percent to 125 days. Months Supply of Inventory was down 76.1 percent to 1.1 months, indicating that demand increased relative to supply.
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.