In October, mortgage rates increased slightly from the three-year lows seen in September. While the Federal Reserve reduced the federal-funds target rate by .25%, this decline was widely expected and largely factored into mortgage rates already, which are still approximately 1% lower than this time last year. Fannie Mae is predicting that continued low rates, and possibly lower rates, are expected in 2020.
New Listings in the Twin Cities region increased 3.8 percent to 6,258. Pending Sales were up 4.9 percent to 5,070. Inventory levels fell 5.8 percent to 11,607 units.
Prices continued to gain traction. The Median Sales Price increased 5.7 percent to $280,000. Days on Market was down 4.2 percent to 46 days. Sellers were encouraged as Months Supply of Homes for Sale was down 8.0 percent to 2.3 months.
As we begin the slower time of year for home sales, historically low mortgage rates will continue to support buyer demand and may create additional lift to home prices as excellent affordability gives buyers the ability to offer more to secure their dream home. Throughout much of the country, the continued low level of housing inventory also continues to constrain sales activity from where it would likely be in a balanced market.