Reef Daily | November 27 2024

Housing Market Update

Latest Market Data (November 27, 2024)
Pending home sales increased 2% in October, marking the third consecutive month of growth. All four major U.S. regions saw gains, with the Northeast leading at 4.7% monthly increase.

Homebuyer mortgage applications surged 12% from the previous week, with the average purchase loan size reaching $439,200.

Consumer sentiment has reached a concerning low, with 82% of Americans believing it's a poor time to buy a house, representing the highest level of homebuyer pessimism ever recorded.

Mortgage Rates

Current rates as of November 27, 2024:

Type	Rate
30-year fixed	6.96%
15-year fixed	6.24%
5/1 ARM	6.57%

Rates have shown mixed movement, with the 30-year fixed rate increasing 4bps while the 15-year fixed decreased 1bps from last week.

Notable Transactions

Commercial Highlights

Foundation Building Materials secured a significant lease of 32,324 square feet of industrial space in Boise.

Regional Activity

Northeast: Led pending home sales growth with a 4.7% monthly increase to 68.7
Midwest: Pending sales grew 4% to 77.8
South: Showed 0.9% growth to 90.0
West: Modest 0.2% increase to 64.1

Market Indicators

Inventory Trends
Total mortgage demand increased 6.3% compared to the previous week, driven by improved inventory conditions and strong economic indicators.

Buyer Demographics
Purchase applications are now 52% higher than the same week last year, indicating increased buyer activity despite higher rates.

Sources:
Mortgages settle under 7% ahead of holiday - Current mortgage rates for November 2, 2024
Housing Market Alarm as Homebuyers 'Most Pessimistic' They Have Ever Been - Newsweek
Mortgage and refinance rates for Nov. 27, 2024: Average 30-year rates trend higher ahead of holiday, while 15-year terms steady
Control the Controllables If You’re Worried About Mortgage Rates
Commercial Real Estate Roundup for Sept. 27, 2024
Pending Home Sales Up 2% in October; All 4 U.S. Regions Record Gains — RISMedia
Homebuyer demand for mortgages jumps 12% after first interest rate drop in over 2 months

Sources

This newsletter is for informational purposes only and should not be considered as financial advice.