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Home price gains slow as mortgage rates rise: Altos

Housing Wire

Mortgage rates are back over 7%. The economy has continued to be strong, so mortgage rates have defied expectations and remained very high. New pendings grow As inventory grows and new sellers grow, it was an encouraging week for new contracts too. This week saw 60,000 new contracts started for single family home purchases.

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Altos: Are higher mortgage already rates deterring homebuyers?

Housing Wire

Mortgage rates are back up over 7% this morning on the back of strong economic growth data. The 10-year bond yield jumped back over 4% and that pushes mortgage rates higher too. Mortgage rates are 40 basis points higher than a month ago, and 100 basis points higher than a year ago. And mortgage rates are 100 basis points higher.

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Real estate momentum slows as interest rates rise again: Altos

Housing Wire

Those metrics, specifically the pace of new listings and new sales contracts, slowed this week. New listings and new contracts both still show a bit of improvement over 2023, but the growth rates have slid back down. The state of California had 20% more contracts started last week than the same week a year ago. Just 31.4%

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Real estate’s strong 2023 housing market finish: Altos

Housing Wire

We have more homes going into contract each week now than we did a year ago — supply and demand are climbing together. This implies that there are more than enough buyers at these prices and these mortgage rates to keep activity happening in housing. There are now 258,000 single family homes in contract.

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Is the housing market finally turning a corner?

Housing Wire

Watch the weekly housing market recap video above to get the latest housing market data download from Altos Research. Meanwhile, there are 66,000 new, single-family listings this week, with 11,000 of those already under contract. As long as mortgage rates don’t spike again, 2024 is set up for slight home-sales gains over 2023.

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Are home sellers finally coming back to the market?

Housing Wire

Housing inventory climbed late in the year as mortgage rates rose. Contracts growing We continue to see the new contracts grow each week: There were 7.7% more new contracts started this week than the same week a year ago. The market was contracting all the way until October, but is now reliably expanding.

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Will home prices continue to grow in 2024?

Housing Wire

The second takeaway is the lesson I’ve been sharing lately: Consumers are more sensitive to changes in mortgage rates than to the absolute levels of rates. Last year mortgage interest rates rose by 450 basis points from 3% to 7.5%. It’s a reflection of very high mortgage rates and how quickly rates rose in September and October.

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