The Challenge of Change

The Challenge of Change | Jim Catalano | Mortgage By Jim

“You picked a fine time to leave me Lucille…” — Kenny Rogers. It’s been a wild up and down ride the past week in the markets, though the reasons are clear. Here’s what they mean for home mortgage rates going into late October.

This past week we saw a sell-off in stocks that continued for most of the week with a slight rebound on Friday. This sell-off resulted in home mortgage rates reaching a new 18-month low. The reasons for the sell-off are pretty obvious. We have plenty of crisis’ on the homefront as well as abroad. There is Isis, Hamas, Ebola fears, and a slew of Washington scandals. If you have money in the markets it’s enough to cause an upset stomach and I’d recommend having some Pepto-Bismol ready.

Another factor causing a drop in the stock market is the end of Quantitative Easing (QE).  This also means the end of the Fed’s bond buying strategy, a factor that could impact home mortgage rates through the end of the year. If stocks continue to worsen, a likely result will be continued improvement in home mortgage rates.

While we look to the week in front of us, the economic calendar is light. Yet with other geopolitical factors in our world, we should be ready for anything.

Remember weak economic news most often causes money to flow out of stocks and into bonds. This results in bonds and home mortgage rates improving. Strong economic news usually has the opposite result.

If you are looking to buy or sell a home, following are some current (September 2014) single-family residential housing trends in an area near you.

 

City Median Sales Price (Sept. 2014) Homes for sale Months Supply Days on Market Closed Sales

Allen

$265,000 ↑

254 ↓ 1.9 ↓ 25 ↑

132 ↓

Frisco

$313,000 ↓ 487 ↓ 1.8 ↓ 27 ↑

261 ↓

Celina

$297,750 ↑ 72 ↑ 3.5 ↓ 28 ↓ 24 ↓

Prosper

$389,000 ↑ 72 ↑ 5.2 ↑ 38 ↓ 39 ↓
McKinney $240,000 ↑ 517  ↓ 1.7 ↓ 28 ↓

293 ↓

Plano $264,500 ↑ 503  ↓ 1.9 ↓ 27 ↓

268 ↓

Garland $143,550 ↑ 369  ↓ 2.2 ↓ 26 ↓

158 ↓

 

City Median Sales Price (Sept. 2014) Homes for sale Months Supply Days on Market Closed Sales

Rowlett

$160,900 ↑ 173 ↓ 2.1 ↓ 25 ↑ 69 ↓

Rockwall

$212,450 ↑ 224 ↓ 3.0 ↓ 38 ↓ 72 ↓

Lewisville

$202,450 ↑ 166 ↓ 1.8 ↓ 22 ↓

88 ↓

Flower Mound

$300,000 ↑ 252 ↓ 2.4 ↓ 28 ↓

97 ↓

Addison

$344,750 ↔ 20  ↓ 1.7 ↓ 22 ↔ 10 ↑

Mesquite

$120,000 ↑ 200  ↓ 1.8 ↓ 31 ↓

117 ↑

Murphy $322,450 ↑ 48  ↓ 2.0 ↓ 23 ↓

28 ↓

Source: NTREIS

 

 

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