What's Happening with Interest Rates?
Interest rates have continued to climb after a short period of decline. According to Melissa Cohn from The Melissa Cohn Group at Raveis Mortgage, “Economic data in October was strong and the 10-year bond yield started to rise back to 4% and higher. Mortgage rates began to climb again. The new administration’s stance on Tariffs, Immigration and tax cuts are all perceived as inflationary and the day after the election the 10-year bond yield shot up to 4.43% and conventional mortgage rates are now back at 7% and jumbo rates in the 6’s.
The Federal Reserve’s two rate cuts – the most recent a .25% cut last week will bring relief to interest rates on consumer loans and business loans. Mortgage rates are out of any one person, or institution’s controls and they are driven largely by the bond market. The bond market reacts to economic data, simply put a healthy economy which can be inflationary equals higher mortgage rates.
This week there are no economic reports that are market moving but there are a number of Federal Reserve Bank President’s speaking, and the markets will be all ears. Last week Fed Chairman Jerome Powell spoke and stated that “The economy is not sending any signals that we need to be in a hurry to lower rates”.
Mortgage rates look to remain higher through the end of the year. They will drop when the economy slows down and inflation continues to drop to the goal of 2%. The good news is that buyers are coming back into the market after the election accepting that rates are range bound for the time being.”
East Hampton Town To Cut Maximum Houses Size In Half
Last week a controversial new zoning law passed in East Hampton Town limiting the size of new homes, regardless of the property size, to 10,000,000 square feet. This will essentially effect property values in the long term..Read the full story here: https://www.easthamptonstar.com/government/20241121/town-to-cut-maximum-house-size-half#:~:text=By%20a%20split%20vote%2C%20the,of%20proposed%20zoning%20code%20amendments.
What Happened This Past Week In The Market
Over the past week there were 15 Listings that went into contract from Westhampton to Montauk.
Compared to this same week last year (2023), there were 19 Listings that went into contract.
Which is a year over year DECREASE of 21%.
This same week in 2022, there were 19 Listings that went into contract.
Compared to this past week in 2024, it’s an DECREASE of 21%.
The breakdown of these Transactions are:
1 Between $10 and $15 Million
2 Between $5 and $10 Million
1 Between $3 and $5 Million
5 Between $2 and $3 Million
4 Between $1 and $2 Million
2 Under $1 Million
Over the past week, the Dollar Volume was $51 Million.
Compared to this same week last year (2023), the Dollar Volume was $41 Million.
Which is a year over year INCREASE of 24%.
This same week in 2022, the Dollar Volume was $70 Million.
Compared to this past week in 2024, it’s an DECREASE of 27%.
This past week there were 26 New Listings coming onto the market.
With 15 Listings going into contract, this INCREASES the inventory by 11 Listings.
The breakdown of these 26 New Listings are:
2 Between $10 and $15 Million
1 Between $5 and $10 Million
10 Between $3 and $5 Million
2 Between $2 and $3 Million
6 Between $1 and $2 Million
5 Under $1 Million
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There were less transactions this past week compared to the same week last year, and the dollar volume continued to increase, showing that prices continue to rise throughout the Hampton's!
