With the dramatic weather change we saw with the Memorial Day weekend, I would not be surprised if the housing market warmed up a little more. The average number of days a house is on the market has dropped from 70 days to 60 days in the last month. Interest rates have also fallen, with recent quotes on a 30-year fixed rate mortgage down to 5.5%. This is within about .25% of record lows that we saw in 2003. The lower interest rates have baffled even Federal Reserve Chairman Alan Greenspan and while there’s some debate about when they will go back up, everyone agrees that mortgage interest rates will go up and could rise dramatically once they start.
For more data on the current housing market, please see the Minneapolis Area Association of Realtors Weekly Activity Report. For more current information, or for information specific to your area, feel free to call me anytime at 612-251-5599.