Mon, Aug 3 – Austin Metro Area Real Estate Update
417 new homes emerged on the market in the past 7 days. 1.7% increase from last week.
591 homes went under contract in the past 7 days. 2.6% increase from last week.
462 homes sold and closed in the past 7 days. 15.1% increase from last week.
75 homes withdrawn or temporarily taken off the market. 6.9% increase from last week.
Austin Metro Area Market Overview
The real estate scene was again largely unchanged this past week. There was a slight improvement over last week but nothing that is going to make a big impact. I’m starting to feel like a broken record. I keep coming back to run the data for the week wondering if some new inventory snuck in behind my back but the story of pending sales outpacing new listings continues on like our Texas summer heat.
IMPORTANT UPDATES ON – Interest Rates, Loan Refinancing & Loan Qualification
FHA tightened their loan qualification requirements for self employed persons this past week to match what we have seen with conventional loan requirements. This is due to the economic impacts from covid. Not a big surprise for those of us in the industry but something to note. I suspect these qualification requirements will be in place until the economy has adequate time to reflect stability in the market which might be another year.
Interest rates continue to remain stable but it is imperative you shop rates with local lenders as the big banks have not been showing competitive rates these days. Right now you can get 2.875% for a 30 year conventional loan and 2.62% for a 15 year Conventional Loan. Refinance rates are a little bit higher now at 3.125%. So it is always important for you to get accurate data from a mortgage lender if you are curious about the current rates. I am encouraging clients and customers to connect with your lender sometimes before the end of the year for a brief consultation to review your current mortgage and to determine if a refinance is recommended. It is important to note that some home mortgage institutions are not prioritizing refinances so they may be offering higher rates so be careful to get second opinions especially when dealing with larger banks and institutions.
Our lenders are still communicating that they expect to see interest rates go down this year so it is best to keep an eye on things if you have plans to purchase before 2021. Mortgage qualification rules have not seen any significant changes in the past month. We still have adjustments to the Fannie Mae credit score, employment verification, self-employed and income review regulations. A consultation with one of our local lenders can help you identify how to navigate new financial options for a home purchase so you can plan accordingly.
As always our preferred lenders are available to discuss changes in the mortgage scene and answer your questions.
Austin REALTORS® mobilized and told the City Council to hold the line on property taxes. We are pleased that Council listened and adopted a proposed maximum tax rate that aligns with the 3.5% revenue guidelines established by state Senate Bill 2.
Council will adopt the final property tax rate used for the City’s FY 2020-21 Budget after a final public hearing on August 12 but they can only adopt a property tax rate that is at or below the maximum rate approved by Council last Friday!