The Market & Industry: Record-low mortgage rates, but REALTORS® less optimistic

The California housing market remains unseasonably strong, if slightly slower than September’s record-high levels. Buyers have been eager to take advantage of low mortgage rates — last week, rates hit a new record low of 2.72 percent for a 30-year, fixed-rate mortgage. In October, closed sales jumped 19.9 percent from October 2019, putting the state within 1.3 percent of its cumulative total of home sales through the first 10 months of 2019 despite suffering declines of 30 to 50 percent during the first few months of the pandemic. Still, on C.A.R.’s most recent weekly survey, fewer REALTORS® have reported having a listing appointment, entering escrow or closing a transaction — and few are optimistic sales or listings will improve in the coming weeks.

Working from home could be more widely beneficial to Black renters seeking to purchase a home, according to a study from Zillow. By virtue of where they live, how much they typically earn and what jobs they typically hold, Black renters are 29 percent more likely than other renters to be able to buy their first home by taking advantage of teleworking.

Additionally, last week a state auditor revealed the California Debt Limit Allocation Committee allowed $2.7 billion in bond capacity — that could have been used for affordable housing — to expire. And thanks to sluggish sales during the pandemic, iBuyer market share is set to drop by 50 percent in 2020 compared to 2019 levels.

Sources: C.A.R., Freddie Mac, The Orange County Register, The San Francisco Chronicle, Zillow Research, Mike Del Prete