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 were down 0.1 percent to 673. Pending Sales increased 18.2 percent to 500. Inventory shrank 9.6 percent to 2,166 units.
Prices moved higher as Median Sales Price was up 4.9 percent to $350,270. Days on Market increased 10.5 percent to 147 days. Months Supply of Inventory was down 16.4 percent to 4.6 months, indicating that demand increased relative to supply.
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.