Interest rates

Real Estate Update: Home Sales Fall as Mortgage Interest Rates Rise

Mortgage applications hit a 22-year low as mortgage interest rates rose and home sales fell, according to the Mortgage Bankers Association weekly survey.

“The buying market has been hurt by persistently low housing inventory and soaring mortgage rates over the past two months,” Joel Kan, an economist at the Mortgage Bankers Association, said in a statement. “These worsening affordability issues have been particularly difficult for potential first-time buyers.”

Demand for mortgages to buy a home fell 7% last week and was 21% lower than a year ago.

The average interest rate on a 30-year fixed rate mortgage has fallen from 5.33% to 5.40%. For a 15-year fixed rate mortgage, the average rate went from 4.59% to 4.62%.

Loan refinancing fell 6% for the week and was 75% lower than a year earlier.

“While rates were still lower than they were four weeks ago, they remained high enough to continue to suppress refinancing activity,” Kan said.

The Federal Reserve meets next week and may announce another hike in its main borrowing rate. On Thursday, Freddie Mac, the mortgage buyer, reported a 30-year rate of 5.23%. The average rate had not exceeded 5% for more than a decade before April 2022.

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Seattle Real Estate Update

Below is your Seattle real estate update to help you stay up to date on the market. This report for the Seattle metro area was created using data from Redfin. The statistics are from the four weeks ending June 5, 2022. Metros with more than 50 homes sold during that time period were considered for metro-level rankings for each statistic.

Median selling price

Seattle, WA Metro Area:
– Median selling price: $855,250
– Change over one year: +16.1%

Metros with the highest median sale price
#1. Metro San Francisco, California: $1.7 million
#2. Metro San Jose, California: $1.5 million
#3. Santa Cruz, CA metro area: $1.2 million

Subways with the lowest median sale price
#1. Weirton, West Virginia metro area: $109,188
#2. Davenport, IA metro area: $126,625
#3. Cumberland Metropolitan Area, MD: $127,888

Median selling price per square foot

Seattle, WA Metro Area:
– Median selling price per square foot: $495
– Change over one year: +19.7%

Subways with the highest median selling price per square foot
#1. Metro San Francisco, CA: $1,121
#2. Kahului, HI metro area: $943
#3. Metro San Jose, CA: $939

Subways with the lowest median selling price per square foot
#1. Davenport, IA metro area: $87
#2. Carbondale, Illinois metro area: $88
#3. Peoria, Illinois metro area: $89

Sales/list price ratio

Seattle, WA Metro Area:
– Average ratio of sales to list price: 1.06
– Change over one year: -0.01

Metros with the highest sales/list price ratio
#1. Rochester, New York Metro Area: 1.15
#2. San Francisco, California Metro Area: 1.12
#3. Oakland, CA metro area: 1.12

Metros with the lowest sales/list price ratio
#1. Lake Charles, LA Metro Area: 0.92
#2. Weirton, West Virginia Metro Area: 0.95
#3. Carbondale, Illinois Metro Area: 0.97

Homes sold with price reductions

Seattle, WA Metro Area:
– Homes sold with price reductions: 6.3%
– Change over one year: +0.4%

Metros with most homes sold with price cuts
#1. The Villages, Florida Metro Area: 28.1%
#2. New York, NY Metro Area: 26.2%
#3. Pass Grants, GOLD Metropolitan Area: 25.7%

The metros with the fewest homes sold with a price drop
#1. Brownsville, Texas metro area: 0.0%
#2. Columbia, Missouri Metro Area: 0.0%
#3. Jefferson City, Missouri Metro Area: 0.0%

Out of market in two weeks

Seattle, WA Metro Area:
– Off market in two weeks: 80.6%
– Change over one year: -4.7%

Metros with the most homes off the market in two weeks
#1. Rochester, New York metro area: 87.7%
#2. Kalamazoo, Michigan metro area: 82.8%
#3. Wichita, Kansas metro area: 82.7%

Metros with the fewest homes off the market in two weeks
#1. Urban Honolulu, HI metro area: 2.2%
#2. Oshkosh Metropolitan Area, WI: 3.3%
#3. Appleton, Greater Wisconsin: 4.0%

Months of supply

Seattle, WA Metro Area:
– Months of supply: 4.7 months
– Change over one year: +1.1 months

Metros with the most months of supply
#1. Lake Charles, LA Metro Area: 273.9 months
#2. Brownsville, Texas metro area: 37.1 months
#3. Atlantic City, NJ Metro Area: 20.3 months

Metros with the least months of supply
#1. Metropolitan Lewiston, ME: 2.9 months
#2. Portland Metro Area, ME: 3.1 months
#3. Wichita, KS metro area: 3.7 months