The 30-year fixed-rate mortgage averaged 3.82% for the week of June 13 Freddie Mac reported on Thursday. A 15-year-fixed-rate mortgage held at 3.26%, down slightly from 3.28%. We are almost halfway through 2019 and the 30-year-fixed-rate mortgage has shown weekly increases only 6 times all year.
Fannie Mae's Mortgage Lender Sentiment Survey reports that, "The net profit margin outlook for mortgage lenders turned positive for the first time in nearly three years, due primarily to strong demand expectations for both purchase and refinance mortgages."
Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, continues, "Lender sentiment regarding both recent and expected purchase mortgage demand growth across all loan types was the most upbeat in at least three years. And for the first time in more than two years, lenders who are reporting or expecting growing refinance demand became the majority. With brighter volume expectations, the profit margin outlook improved markedly, helping the net share of lenders reporting rising profits turn positive for the first time in nearly three years, with consumer demand cited as the top reason for the rosier outlook."
What does this mean for real estate? Because interest rates are still at near-historic lows, demand for mortgages is continuing to increase. There is significant demand for housing in the Reno-Sparks area, especially in the under $600,000 range. For homes priced under $300,000, we only have 19 days of inventory, and for homes in the range of $300,000 to $600,000, inventory is 2.3 months. If you own a home in either of these price ranges, it is a very good time to sell with little competition in the marketplace.
If you are planning to purchase or sell a home in Northern Nevada, please reach out to Sallan Real Estate. We will be honored to assist you in your real estate needs however we can.