As I write this letter, I am sitting in my dining room which has, since March 2020, become my office. Instead of knives and forks, my dining room table supports pens and paper clips. The main course is my MacBookAir and multiple side dishes are files with addresses that represent our diverse region. Recently, I have been heading back into our Chestnut Hill office more frequently, but, as you know, this pandemic isn’t over yet. Our team is dedicated to helping our clients buy and sell and still stay safe in the Covid era.
Just published data show that 2% fewer homes were sold this summer in the Philadelphia area than in 2020. The Loretta Witt Homes Team didn’t feel that change. We have been actively selling properties all year! I am enormously proud of our team agents who, as of late September, have been responsible for selling almost $28 million dollars of properties since January 1st. We’re not done yet!
This busy market has been driven in part by low inventory of homes for sale and in part by low interest rates. As I write, 3.125% is available from several top-rate lenders for a 30 year fixed rate mortgage. Over the summer, we were seeing 2.75% to 2.99%. What makes these rates change? They fluctuate with Federal Reserve policy and market conditions. On a level more personal to each buyer, the rate on an individual loan will depend on the buyer’s credit record, debt to income ratio, and employment history.
The highest rates in recent history happened in 1981 when the average mortgage interest rate hit 18.63%. Since that time, they have slowly come down. By 2000, at the beginning of an historic seller’s market, the average was about 8.05%. At the depth of the market cataclysm in 2009, rates averaged at 5.04%. So today’s rates are extremely appealing and beg the question: “What will the economy bring us in 2022?”
If interest rates are uncertain, one thing is not. Bill Shelton, Carolyn Masters, Ernie Tracy, Jenn Flynn, Baiyina Brown, Janet Lippincott and I will face 2022 with energy and enthusiasm to guide you through your real estate transaction. Thank you for thinking of us as your Realtors.
Loretta Witt, CRS, GRI ABR, GREEN