PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMTUnKTtteWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfOCcpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8xNS4xJyk7PC9zY3JpcHQ+Lauren Williamson is the Financial and Home Services Editor for the Hearst E-Commerce team. She previously served as Senior Editor at Chicago magazine, where she led coverage of real estate and business, and before that reported on regulatory law and financial reform for a magazine geared toward in-house attorneys. You can reach her at [email protected] Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.BALTIMORE — Baltimore homebuyers looking for some relief after the Federal Reserve announced its rate pause mid-June need to keep waiting: The average for a 30-year fixed-rate mortgage surged to 7.02% as of June 30, up 0.1 percentage point from the week before, according to Mortgage News Daily.Video above: Home loan fee structure changes (May)The reason? Wave after wave of positive economic data that’s rolled in over the past week. Consumer confidence is the highest it has been in a year and a half, while orders for U.S. goods rose in May, beating expectations. On top of that, new home sales increased 20% in May over the same month last year. All that positive news means that a recession suddenly seems much less likely in 2023 — although it also means that mortgage rates aren’t likely to fall anytime soon. On top of that, the Fed is expected to impose more rate hikes at the July and August meetings as it tries to bring inflation down to its 2% target.”It’s going to take some time,” Fed Chair Jerome Powell said during a banking forum last week. “Inflation has proven to be more persistent than we expected and not less.”As a result of all the economic news, mortgage rates are up across the board. The average for a 15-year fixed-rate mortgage was 6.42%, as of June 23, while the average for a jumbo mortgage was 6.90%. The average for a 5/1 ARM, meanwhile, was 6.95%. It’s not impossible to find better mortgage rates, however, by shopping around with various lenders.Baltimore housing market trendsIn June, the median home sale price in Baltimore was $215,000, according to Rocket Mortgage. The housing market in Baltimore remains somewhat competitive, with Redfin giving the city a “Compete Score” of 65 (with 100 being the most competitive score). For comparison, Bowie has a Compete Score of 80 and Washington, D.C., has a Compete Score of 56.The total housing inventory was down 1% in June from May, according to Rocket Mortgage. Redfin says that the number of homes sold in Baltimore is down more than 22% year-over-year. On average homes are staying on the market nine days longer than they were one year ago (29 days vs. 20 days).According to Redfin, the average home in Baltimore sells for about 2.9% above list price these days. But slightly fewer homes are selling above list price this year. In May 2022 about 43% of homes in Baltimore were selling above list price, whereas in June 2023 that percentage was 41.3%.Are housing prices dropping in Baltimore?The good news: Home prices in Baltimore are down from their Spring 2022 peaks. The bad news: Prices are creeping back up, and still well above where they were pre-pandemic. Nationally, the median new house price in May was $416,300, a 7.6% drop from a year ago. Inventory remains tight in Baltimore, so home prices are unlikely to drop substantially anytime soon.National housing market trendsWhile new home sales were up in May, existing home listings remain at historic lows. New listings were down 27% year-over-year for the four weeks ending June 25, according to Redfin. That’s the biggest decline since pre-COVID times. As a result of the inventory squeeze, the average home is selling for only $4,000 less than it did last year. Homebuyers this spring have been closely attuned to mortgage rates. Mortgage applications rose 3% for the week ending June 23 over the week before, according to the Mortgage Bankers Association. (The data includes an adjustment for Juneteenth, which is a federal holiday.)”New home sales have been driving purchase activity in recent months as buyers look for options beyond the existing-home market,” said Joel Kan, MBA’s vice president and deputy chief economist. “Existing-home sales continued to be held back by a lack of for-sale inventory as many potential sellers are holding on to their lower-rate mortgages.”Homebuyers watching mortgage rates and waiting for the perfect moment to strike might not want to wait too long. Many economists predict an incoming credit crunch — when banks restrict borrowing to steady their finances — which would make it harder over the coming months to get a mortgage. That means potential homebuyers could have a window of opportunity right now to lock in a satisfactory rate. Comparing rates between multiple lenders will help you find the best loan for your situation.Mortgage rate trendsThirty-year fixed-rate mortgage rates have more than doubled from the historically low rates of 2020 and 2021, when rates plummeted below 3%. Some economists were hopeful that the Federal Reserve’s decision at its June 14 meeting to hold the federal funds rate steady would trigger a decline in mortgage rates, but that hasn’t been the case yet. However, the Fed has cautioned that it can take a while for the full impact of its policy decisions to be felt, so rates could still fall this year. Many analysts zeroed in on the suggestion that two more quarter-point rate hikes will come later this year, once the Fed sees how its actions to date have worked. In the meantime, there are signs that the Fed’s policy moves are working: The Consumer Price Index rose 4% year-over-year in May, the smallest increase since 2021, though still well above the 2% target.30-year fixed mortgage interest ratesOn average, the interest rate for a 30-year mortgage on June 30 was 7.02%, up from 6.92% on June 23.15-year fixed mortgage interest ratesOn average, the interest rate for a 15-year mortgage on June 30 was 6.42%, up from 6.30% on June 23.Jumbo mortgage interest ratesOn average, the interest rate for a 30-year fixed rate jumbo mortgage on June 30 was 6.90%, up from 6.72% on June 23.5/1 adjustable-rate mortgagesOn average, the interest rate for a 5/1 ARM on June 30 was 6.95%, up from 6.90% on June 23.What determines mortgage rates?Mortgage rates are influenced by a variety of factors, including:Your credit scoreDown paymentYour debt-to-income ratio (DTI)The type of loan you’re gettingLoan termInterest rate type (fixed vs. adjustable)Inflation and the overall economyThe Federal Reserve (which doesn’t set mortgage rates, but it certainly influences them)APR vs. interest rateIf you’re currently shopping for a mortgage or considering refinancing, you’ve probably wondered why the quoted interest rate isn’t the same as the APR. That’s because the loan’s interest rate is what you pay the lender to borrow the money, while the APR (annual percentage rate) encompasses both the interest rate and all loan-related fees. Loan-related fees can include:Mortgage broker feesLoan origination feesMortgage insurance premiumsSome closing costsThe APR, therefore, is a truer measure of what it will actually cost you to borrow money to buy a home.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was reviewed by Lauren Williamson, who serves as the Home and Financial Services Editor for the Hearst E-Commerce team. Email her at [email protected].
Lauren Williamson is the Financial and Home Services Editor for the Hearst E-Commerce team. She previously served as Senior Editor at Chicago magazine, where she led coverage of real estate and business, and before that reported on regulatory law and financial reform for a magazine geared toward in-house attorneys. You can reach her at [email protected] Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.BALTIMORE — Baltimore homebuyers looking for some relief after the Federal Reserve announced its rate pause mid-June need to keep waiting: The average for a 30-year fixed-rate mortgage surged to 7.02% as of June 30, up 0.1 percentage point from the week before, according to Mortgage News Daily.
Video above: Home loan fee structure changes (May)
The reason? Wave after wave of positive economic data that’s rolled in over the past week. Consumer confidence is the highest it has been in a year and a half, while orders for U.S. goods rose in May, beating expectations. On top of that, new home sales increased 20% in May over the same month last year. All that positive news means that a recession suddenly seems much less likely in 2023 — although it also means that mortgage rates aren’t likely to fall anytime soon. On top of that, the Fed is expected to impose more rate hikes at the July and August meetings as it tries to bring inflation down to its 2% target.”It’s going to take some time,” Fed Chair Jerome Powell said during a banking forum last week. “Inflation has proven to be more persistent than we expected and not less.”As a result of all the economic news, mortgage rates are up across the board. The average for a 15-year fixed-rate mortgage was 6.42%, as of June 23, while the average for a jumbo mortgage was 6.90%. The average for a 5/1 ARM, meanwhile, was 6.95%. It’s not impossible to find better mortgage rates, however, by shopping around with various lenders.
Baltimore housing market trendsIn June, the median home sale price in Baltimore was $215,000, according to Rocket Mortgage. The housing market in Baltimore remains somewhat competitive, with Redfin giving the city a “Compete Score” of 65 (with 100 being the most competitive score). For comparison, Bowie has a Compete Score of 80 and Washington, D.C., has a Compete Score of 56.The total housing inventory was down 1% in June from May, according to Rocket Mortgage. Redfin says that the number of homes sold in Baltimore is down more than 22% year-over-year. On average homes are staying on the market nine days longer than they were one year ago (29 days vs. 20 days).According to Redfin, the average home in Baltimore sells for about 2.9% above list price these days. But slightly fewer homes are selling above list price this year. In May 2022 about 43% of homes in Baltimore were selling above list price, whereas in June 2023 that percentage was 41.3%.Are housing prices dropping in Baltimore?The good news: Home prices in Baltimore are down from their Spring 2022 peaks. The bad news: Prices are creeping back up, and still well above where they were pre-pandemic. Nationally, the median new house price in May was $416,300, a 7.6% drop from a year ago. Inventory remains tight in Baltimore, so home prices are unlikely to drop substantially anytime soon.National housing market trendsWhile new home sales were up in May, existing home listings remain at historic lows. New listings were down 27% year-over-year for the four weeks ending June 25, according to Redfin. That’s the biggest decline since pre-COVID times. As a result of the inventory squeeze, the average home is selling for only $4,000 less than it did last year. Homebuyers this spring have been closely attuned to mortgage rates. Mortgage applications rose 3% for the week ending June 23 over the week before, according to the Mortgage Bankers Association. (The data includes an adjustment for Juneteenth, which is a federal holiday.)”New home sales have been driving purchase activity in recent months as buyers look for options beyond the existing-home market,” said Joel Kan, MBA’s vice president and deputy chief economist. “Existing-home sales continued to be held back by a lack of for-sale inventory as many potential sellers are holding on to their lower-rate mortgages.”Homebuyers watching mortgage rates and waiting for the perfect moment to strike might not want to wait too long. Many economists predict an incoming credit crunch — when banks restrict borrowing to steady their finances — which would make it harder over the coming months to get a mortgage. That means potential homebuyers could have a window of opportunity right now to lock in a satisfactory rate. Comparing rates between multiple lenders will help you find the best loan for your situation.Mortgage rate trendsThirty-year fixed-rate mortgage rates have more than doubled from the historically low rates of 2020 and 2021, when rates plummeted below 3%. Some economists were hopeful that the Federal Reserve’s decision at its June 14 meeting to hold the federal funds rate steady would trigger a decline in mortgage rates, but that hasn’t been the case yet. However, the Fed has cautioned that it can take a while for the full impact of its policy decisions to be felt, so rates could still fall this year. Many analysts zeroed in on the suggestion that two more quarter-point rate hikes will come later this year, once the Fed sees how its actions to date have worked. In the meantime, there are signs that the Fed’s policy moves are working: The Consumer Price Index rose 4% year-over-year in May, the smallest increase since 2021, though still well above the 2% target.
30-year fixed mortgage interest ratesOn average, the interest rate for a 30-year mortgage on June 30 was 7.02%, up from 6.92% on June 23.15-year fixed mortgage interest ratesOn average, the interest rate for a 15-year mortgage on June 30 was 6.42%, up from 6.30% on June 23.Jumbo mortgage interest ratesOn average, the interest rate for a 30-year fixed rate jumbo mortgage on June 30 was 6.90%, up from 6.72% on June 23.5/1 adjustable-rate mortgagesOn average, the interest rate for a 5/1 ARM on June 30 was 6.95%, up from 6.90% on June 23.What determines mortgage rates?Mortgage rates are influenced by a variety of factors, including:Your credit scoreDown paymentYour debt-to-income ratio (DTI)The type of loan you’re gettingLoan termInterest rate type (fixed vs. adjustable)Inflation and the overall economyThe Federal Reserve (which doesn’t set mortgage rates, but it certainly influences them)APR vs. interest rateIf you’re currently shopping for a mortgage or considering refinancing, you’ve probably wondered why the quoted interest rate isn’t the same as the APR. That’s because the loan’s interest rate is what you pay the lender to borrow the money, while the APR (annual percentage rate) encompasses both the interest rate and all loan-related fees. Loan-related fees can include:Mortgage broker feesLoan origination feesMortgage insurance premiumsSome closing costsThe APR, therefore, is a truer measure of what it will actually cost you to borrow money to buy a home.
Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was reviewed by Lauren Williamson, who serves as the Home and Financial Services Editor for the Hearst E-Commerce team. Email her at [email protected].
https://www.wbaltv.com/article/baltimore-housing-market-july-5/44448842
