The February housing data is here for Rutherford County, Tennessee. Closings were down -26.86% year-over-year, but up +22.29% from January. Contracts were down -3.65% from the previous month, but up +9.02% from February 2022. It’s important to keep in mind that Contracts were up a staggering +72.49% in January, so February increase may seem small in comparison. Nonetheless, it’s a positive sign for the housing market in Rutherford County.
Inventory is down for the fourth straight month, but still up from last February’s record low of 165 homes on the market in Rutherford County. Median Price Per Sq.Ft. continues to inch up, now up two straight months to $210 per Sq.Ft. Overall, the latest data indicates that the housing market in Rutherford County may be stabilizing, but it’s still too early to say for certain.
Mortgage interest rates have been steadily increasing for the past four weeks, with the current one-week average at 6.65% (30-Yr FRM). This is a significant increase compared to the 3.76% rate we had at this same time last year, which may be difficult for some buyers to accept.
However, there are signs that buyers are becoming more accustomed to the higher rates. Many experts believe that we are settling into a “new normal” with rates that are comparable to what we saw in the early 2000s. At that time, these rates were considered favorable when compared to the two decades prior.
Despite this, there are still experts who suggest that we may see a slight easing in interest rates when inflation data shows improvement. Inflation is a key factor in determining interest rates because higher inflation can lead to higher interest rates. If the inflation rate decreases, there may be a corresponding decrease in interest rates.
Overall, it’s important for buyers to keep an eye on interest rates and how they may impact their ability to purchase a home. Working with a trusted real estate agent or mortgage professional can help you navigate the current market conditions and find the best options for your individual needs.
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