Last week mortgage rates rose to over 4% for the first time since March 2012!  The average rate for a 30 year fixed rate mortgage is 4.46%. This rise in interest rates will most likely send more buyers out into the market to get a home before rates climb even higher making the homes for sale shortage even greater. On the other hand for some buyers, they may need to adjust the price of homes they are looking at since they are becoming more expensive with higher interest rates.

The number of refinancing applications was down another 5% last week – a plunge of 40% since just back in May!  For many homeowners, a refinance just is no longer worth it if rates are 4% or more.

Have you wondered why people buy homes? In conjunction with Gallop polls, KCM put together the following inforgraphic with the top reasons why people buy homes.

Want to learn a little bit more about me and my business? How do I help buyers, sellers, first time home buyers, seniors? Take a look at my short video to find out more!  Feel free to share the video if you know someone that is looking for a Realtor!

Showings are down and sales are up in the Twin Cities. Why is this happening?

Home inventory is way down and buyers are out in full force. Due to the lack of inventory the buyers don’t have many homes coming up in their searches to actually go out and look at. Since there is less to choose from they are looking at fewer homes and then making their decision to buy. Just a year ago, buyers had a seemingly endless supply of homes that fit their search criteria but now they are lucky if a few come up. They are not waiting for something better to come along as homes are selling fast and if you don’t act quickly, meaning within a few days, they are often gone/sold.

You can click on either chart for a larger version.