November 22, 2019
The rapid drop in interest rates beginning in late spring is the biggest surprise from 2019. A year ago, most financial gurus were predicting mortgage rates would be pushing 5% about now. I don’t recall anyone predicting then the drop of rates that actually occurred. The lesson is that we might want to remember that I once heard is that economists were created so that astrologers would look good!
The refinancing that resulted from lower rates is at the highest level since 2013. That actually made up for the approximately five percent drop so far in Monroe County purchases from 2018. There doesn’t seem to be anything on the near-term horizon that will cause rates to increase significantly.
A realistic planning approach to 2020 might be that the Monroe County purchase market will be in the same range as it’s been the last four years and that refinances will be somewhere between this year and 2018.
Of course, 2020 is an election year . . .
In October we helped 551 people buy, sell or refinance their property. Our Closing Team provided seller side closing statements an average of 4.15 days before closing and two or more days prior to closing in 92% of our transactions. Our title team averaged 5.4 days to issue a title insurance commitment on Monroe County orders.
Have a safe and enjoyable Thanksgiving!
~ John Bethell