Demand for adjustable-rate mortgages (ARMs) is rising, as buyers look to mitigate higher monthly payments caused by record-high sales prices and surging mortgage interest rates. Although less popular than fixed rate mortgages, ARMs offer introductory rates lower than rates from conventional mortgages and currently represent 11% of mortgage loans, up from 3% at the beginning of the year, according to the Mortgage Bankers Association.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 7:
- New Listings decreased 5.7% to 1,808
- Pending Sales decreased 11.6% to 1,406
- Inventory decreased 5.2% to 5,811
FOR THE MONTH OF APRIL:
- Median Sales Price increased 10.0% to $370,000
- Days on Market decreased 9.7% to 28
- Percent of Original List Price Received increased 0.5% to 103.8%
- Months Supply of Homes For Sale remained flat at 1.1
All comparisons are to 2021
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.