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MNR Market Monday Update—October 28, 2024

By MNR News posted 10-28-2024 02:46 PM

  
For the week ending on October 27, showings were up 15.5% across the NorthstarMLS coverage area. The gains were more widespread this time, with showing activity up on listings priced anywhere from $200K up to luxury homes over $1M. Still, homes between $300-400K made up 27.3% of all showings—more than any other price range.

The statewide September numbers showed an increase in seller activity while buyer activity was flat. Prices are still rising, supply levels are still tight and affordability still poses a challenge for too many Minnesotans. That said, builder confidence has risen for a second consecutive month as they’re feeling better about the 2025 outlook, according to the National Association of Home Builders. Sure enough, with between 5 and 6 months of new home supply, they’re ready for rates to break. The most dramatic shortages are in the existing or resale segment.

Despite the Fed’s September rate cut, mortgage rates have actually “fallen upwards,” on some economic news. Chair Powell says the Fed is “recalibrating” interest rates. So are markets. The pathway forward should be slow and lower but bumpy. Waiting may not pay as competition is sure to ramp up if rates fall below 6.0%. Believe it or not, mortgage rates are below their 50-year average of 7.7%. 

To view our latest Weekly Showings Report, click here.

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