WASHINGTON–The average rate on the 30-year, conventional, fixed-rate mortgage jumped to 3.77% in November from 3.47% in October (highest rate since January at 3.87%), according to the National Association of Realtors (NAR). The average commitment rate for all of 2015 was 3.85%.
First-time buyers were 32% of sales in November, which is down from 33% in October but up from 30% a year ago, data from the NAR’s Profile of Home Buyers and Sellers show. That report showed that the annual share of first-time buyers was 35% (32% in 2015), which is the highest since 2013 (38%).
"First-time buyers in higher priced cities will be most affected by rising prices and mortgage rates next year and will likely have to stretch their budget or make compromises on home size, price or location," said the NAR’s chief economist, Leonard Yun.
Other data from the NAR show:
- Properties typically stayed on the market for 43 days in November, up from 41 days in October but down considerably from a year ago (54 days). Short sales were on the market the longest at a median of 110 days in November, while foreclosures sold in 55 days and non-distressed homes took 41 days. Forty-two percent of homes sold in November were on the market for less than a month.
- Data drawn from Realtor.com show the metropolitan statistical areas where listings stayed on the market the shortest amount of time in November were Billings, Mont., 23 days; San Jose-Sunnyvale-Santa Clara, Calif., 41 days; San Francisco-Oakland-Hayward, Calif., 42 days; Nashville-Davidson-Murfreesboro-Franklin, Tenn., 45 days; and Provo-Orem, Utah, at 46 days.
- All-cash sales were 21% of transactions in November, down from 22% in October and 27% a year ago, the NAR said. Individual investors, who account for many cash sales, purchased 12% of homes in November, down from 13% in October and 16% a year ago. Fifty-eight percent of investors paid in cash in November, which matches the lowest share since August 2009.
- Distressed sales — foreclosures and short sales — rose to 6% in November, up from 5% in October but down from 9% a year ago, the NAR said. Four percent of November sales were foreclosures and 2% were short sales. Foreclosures sold for an average discount of 17% below market value in November (18% in October), while short sales were discounted 16% (unchanged from October).