The average 30-year fixed rate mortgage exceeded 5% in April, the highestlevel since 2011, according to Freddie Mac. The recent surge in mortgagerates has reduced the pool of eligible buyers and has caused mortgageapplications to decline.
New Listings decreased 11.0 percent for Residential homes and 8.6 percentfor Townhouse/Condo homes. Pending Sales decreased 6.8 percent forResidential homes and 2.1 percent for Townhouse/Condo homes. Affordability challenges are limiting buying activity, and early signs suggestcompetition for homes may be cooling somewhat.
Nationally, existing homesales are down 2.7% as of last measure, while pending sales dropped1.2%, marking 5 straight months of under contract declines, according tothe National Association of REALTORS®. Inventory remains low, with only 2months supply at present, and home prices continue to rise, with themedian existing home at $373,500, a 15% increase from this time last year.Homes are still selling quickly, however, and multiple offers are common inmany markets.