Adjustable-rate mortgages (ARM) continue to grow in popularity as prospective homebuyers aim to combat rising housing costs. Applications for 5/1 adjustablerate mortgages rose 32.5% the week ending October 6 from four weeks earlier, according to the Mortgage Bankers Association. Effective rates for a 5/1 ARM averaged about 6.66% compared to 7.49% for a traditional 30-year fixed-rate mortgage, with the share of ARM applicants representing 9.2% of all borrowers, the highest percentage since November 2022.
In the Twin Cities region, for the week ending October 7:
• New Listings decreased 4.4% to 1,226
• Pending Sales increased 2.3% to 836
• Inventory decreased 7.7% to 8,740
For the month of September:
• Median Sales Price increased 2.3% to $370,805
• Days on Market increased 6.3% to 34
• Percent of Original List Price Received increased 0.4% to 99.3%
• Months Supply of Homes For Sale increased 20.0% to 2.4