Rates Begin to Increase as Home Sales See Little Impact

Local Market Update – February 2021

Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.

New Listings in the Triangle region decreased 9.4 percent to 3,752. Under Contract Sales were up 8.7 percent to 4,020. Inventory levels fell 63.3 percent to 2,759 units.

Prices continued to gain traction. The Median Sales Price increased 8.1 percent to $302,590. Days on Market was down 46.2 percent to 21 days. Sellers were encouraged as Months Supply of Inventory was down 66.7 percent to 0.7 months.

For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.

Click on the links below for more detailed information about the Real Estate Markets in Durham, Orange & Chatham counties:

Durham County
Orange County
Chatham County

For information about how the local market affects your real estate needs, contact any of the real estate experts at Peak Swirles & Cavallito Properties.

*All data from Triangle Multiple Listing Service, Inc. ©2021