Remember Those 2% Rates? They're Closer to 4% Now!
One of the few positives from the stay-at-home order was the all-time low mortgage rates. At one point you could see top tier 30 Year Fixed pricing in the 2% range. There was a small attempt at increasing in early 2021, however rates were still at worst in the low 3% range for even a B-paper borrower. At any other time, a low 3% rate on a 30-year fixed would have been an all-time low. It seemed as though rates were never coming back, until late September!
On 9/22 the Feds announced their plan to continue to dial back on bond spending and would seek to slow down rate-friendly policies. Rates remained constant and held around the low 3% range for the months leading up to the New Year.
It appears that almost overnight, the rates changed. Fed speakers began making implications that they would tighten their policy quicker than expected and we are seeing the results this week. Bonds hit their weakest levels yesterday, January 18th sending the average lender to a 3.75% Interest Rate after beginning the day at a 3.625%
Today, January 19th mortgage prices improved by around 21 bps from market close yesterday. This is an interesting improvement, showing some resilience similar to that of September, 2021. While we still see some days in the green, all indicators are pointing to a continued rise.
$75mm sale breaks miami record
A property sold on December 22nd, 2021 sets the Miami record for the most expensive home sold YTD. Located on star island, one of Miami’s most prestigious and exclusive neighborhoods hosting the likes of icon P Diddy, the property sold for a whopping $75mm. With 9 bedrooms and 11 bathrooms spanned over 15,000 SQFT, the price begins to make sense… begins. Although initially listed at $80mm, the deal closed at $75mm, still beating the recent record of $65mm for a single property. The seller was listed as Lourdes Sanjenis, who has owned the property since 2013. Although this is an astonishing sale, home values in Miami have been skyrocketing this year and we don’t expect this to be the top sale for much longer!