A recent report from real estate company Bright MLS has shown that high mortgage rates have not had a significant impact on home prices in the Baltimore metro area. Despite an increase in interest rates and a shortage of inventory, home prices in the area have remained stable.
According to the report, the median sales price for a home in the Baltimore metro area was $385,000 in August, which is consistent with prices from June. In comparison to August 2022, home prices have increased by 4.6%. This indicates that the housing market in the Baltimore area remains strong, with prices continuing to rise despite higher mortgage rates.
However, with the increase in costs, there has been a decline in the number of closed sales. In August, closed sales dropped by 22% compared to the same period last year. This could be due to the affordability challenges posed by higher mortgage rates.
Nationwide, mortgage rates are also on the rise. The San Francisco Chronicle reports that the average rate for a 30-year fixed mortgage is currently at 7.22%. While this is lower than the 22-year high reached earlier, it is still a significant increase compared to previous years.
Looking ahead, the Federal Open Market Committee meeting next week could have an impact on mortgage rates. If the Fed decides to raise rates, it could potentially lead to a moderation in mortgage rates. However, it remains uncertain what the exact outcome will be.
In conclusion, despite higher mortgage rates, home prices in the Baltimore metro area have remained unaffected. The shortage of inventory has contributed to rising prices, and while there has been a decline in closed sales, the housing market in the area continues to show stability.
– Bright MLS report
– The San Francisco Chronicle