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Bidding wars battle with rising interest rates

Posted by The Aramco Group on Mon, Jan 16, 2017 @ 14:01 PM

More properties for sale are multiple offers according to the latest report from the California Association of Realtors. Thirty-six percent of homes on the market in November saw at least three offers, up from 30 percent in October.

Nearly a third of listing had a price reduction in November, unchanged from the month prior. When asked what their primary concern was, a growing number of Realtors surveyed by CAR answered rising mortgage rates. 19 percent of respondents were worried about the impact on the housing market if rates continue to climb, a significant increase from the six percent who citied the same concern in October.

Mortgage rates have climbed since the presidential-election explaining the increased apprehension in mortgage rates from October to November. The 10-year Treasury yield has risen one percent since the election which greatly effects mortgage rates.

Meanwhile, conventional conforming no-point 30-year fixed rates are averaging 4.125 percent while the 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.