400 groups view $1 million property in 4 days
Are potential buyers suffering buyer fatigue and withdrawing from the search? Well, not according to this recent example where a staggering 400 groups viewed a $1 million listing in Wenham in 4 days.
The only reaction is…. wow! Wow indeed.
Why are Mortgage Rates so high?
Yes, interest rates are rising and with that so are mortgage rates, but the 30-year Fixed Rate Mortgage (FRM) seems to be about 0.5% higher than I would expect.
First, current rates:

In my recent article The Federal Reserve and Mortgage Rates I explained the link between the FRM and the 10-year Treasury yield (10T). The difference – the spread – has average around 1.7% over time, but with significant fluctuations during periods pf stress.
Here is the chart highlighting the spread at the time of Federal Funds rate changes – and as of this week: (more…)
New Listings week ending April 1
A few more New Listings in some towns:

Click on these links for details:
Marblehead New Listings
Swampscott New Listings
Salem New Listings
Beverly New Listings
And inventory remains chronically low: (more…)
New Listings mid-week
The number of New Listings remains low:

Click on these links for details:
Marblehead New Listings
Swampscott New Listings
Salem New Listings
Beverly New Listings
Lynn New Listings
And inventory remains chronically low: (more…)
It’s not just Tom Brady who is Unretiring
Millions of U.S. workers retired during the pandemic. Now many are returning to work at rates not seen since 2020.
Tom Brady, it turns out, has good company in reconsidering hanging up the proverbial cleats: In February, the share of retired workers re-entering the workforce climbed to around 3% of total retirees, its highest level since early March 2020, according to an Indeed analysis of federal labor data.

Many are people under the official retirement age who, spurred by rising asset values or Covid-19 worries, left the workforce ahead of schedule, labor economists say. Roughly 2.6 million Americans retired earlier than expected between February 2020 and October 2021, according to estimates from Federal Reserve Bank of St. Louis senior economist Miguel Faria-e-Castro.
Others now quitting early retirement realize they weren’t as financially prepared to live without a steady paycheck as they hoped. Um, I am not sure that is why Brady is unretiring…… (more…)
Open Houses Sunday March 27
Here are today’s Open Houses:
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Click on these links for details: (more…)
Did You Know?
* Though just 17% of the U.S. population is 65 or older, United Van Lines reports that seniors in that age group completed 29% of all its moves in 2020. Sumter County, Florida has one of the highest levels of inbound migration of seniors in the U.S. thanks in large part to the Villages, a sprawling retirement community more than 50 miles northwest of Orlando. But large cities are seeing an influx of older people seeking the excitement and variety/volume of entertainment/restaurant options. (WSJ)
* In the 4th quarter of 2021, investors bought 18.4% of the US homes that were purchased, a record high. And possibly one of the biggest drivers of housing inflation? Higher purchase prices + higher rents = essential demand for higher wages. (FT)
* The median monthly payment on a new mortgage is now taking up a much larger share of a typical consumer’s income. It jumped 8.3% in February compared with January. The average rate on the 30-year fixed mortgage shot significantly higher yesterday, rising 24 basis points to 4.95%. The quicker-than-expected rise in rates has weighed on demand for mortgages and refinancing loans. With both rates and prices considerably higher, the median mortgage payment is now more than 20% higher than it was a year ago. And so is pricing in some parts….Now comes the question: are incomes that much higher to sustain this? (CNBC)
* The average bonus paid to securities industry employees in New York climbed 20% to a record $257,500 for 2021, the largest increase in bonuses since 2009. Securities industry jobs make up just 5% of private sector roles, but accounted for 18%, or $14.9 billion, of state tax collections in the 2021 fiscal year. (CNBC)
And read these recent articles: (more…)
New Listings week ending March 25th
Still no Spring in New Listings:

Click on these links for details:
Marblehead New Listings
Swampscott New Listings
Salem New Listings
Beverly New Listings
Lynn New Listings
And inventory remains chronically low: (more…)
Open Houses weekend March 26/27
Here are this weekend’s Open Houses (an updated list will be posted at 8 am tomorrow for Sunday’s OHs):

Click on these links for details: (more…)
Time to consider an Adjustable Rate Mortgage
As 30-year mortgage rates (FRM) continue their recent vertical ascent, it is worth considering an Adjustable Rate Mortgage (ARM).
Here are the latest rates:

ARMs got a bad name in the boom that contributed to the Great Recession, but as in so many different situations, that was the result of lax – or no – underwriting standards – think liar loans – and loans with adverse features such as negative amortisation – payments so low, initially, that the loan balance increased over time.
All that changed with the passage of the Dodd-Frank Act in 2010. (more…)
New Listings mid-week March 23
It may be Spring but there is no spring in New Listings:

Click on these links for details:
Marblehead New Listings
Swampscott New Listings
Salem New Listings
Beverly New Listings
Lynn New Listings
And inventory remains chronically low: (more…)
Did You Know? Wednesday edition
* Austin, TX rents rose an eye-watering 40% in February 2022 compared to 2021! Portland followed at 39%. New York City rents rose 36%! Newark and New Brunswick, NJ, and Nassau County, Long Island saw 36% jumps in rents. Florida had 3 of the top 10 metro areas with the steepest rent hikes in February: Rents in Miami, Fort Lauderdale and West Palm Beach jumped 30% in February compared to 2021. Denver was up 29%. (NY POST)
* Andy Warhol’s portrait Shot Sage Blue Marilyn could become the most expensive 20th-century artwork to ever sell at auction, with an estimate in the region of $200 million.
* A hospice nurse shared the 5 common regrets people have in their last days:
1. Most people at the end of their lives have regrets about not appreciating their health.
2. Not appreciating being alive, the little things.
3. Working their life away.
4. Not spending more time with family.
5. Spend time with those you love, not necessarily family, but those you love and make you feel loved. (US SUN)
* The US has agreed to ease the 2018 tariffs on UK steel and aluminum shipments that may help lower some construction costs.
And read these recent articles: (more…)
The Federal Reserve and Mortgage Rates
As expected, the Federal Reserve (Fed) increased its Fed Funds Rate (FF) this week by 0.25% to 0.5%, the first increase since 2018.
What does this mean for mortgage rates and why are they rising? The FF rate affects the lending rate for credit cards, auto loans, adjustable rate mortgages, all of which are impacted by banks’ Prime Rate, which moves with the FF rate. Fixed Rate Mortgages – the typical 30-year mortgage – have a longer life and their benchmark is the closest Treasury security, which is the 10-year (10T).
Five charts explain the factors driving mortgage rates. In all cases the numbers are at the dates that the Fed has changed its FF since 2015: 9 increases followed by 5 decreases before this week’s rise. Because the purpose of this article is to show the link between FF, FRM and 10T the dates shown are only those on which the FF rate changed. Bear that in mind when looking at the charts below – they do not attempt to show all the price movements in between the dates shown. (more…)
Open Houses Sunday March 20
Spring has arrived for today’s Open Houses:

Click on these links for details: (more…)
Open Houses weekend March 19/20
Here are this weekend’s Open Houses (an updated list will be posted at 8 am tomorrow for Sunday’s OHs):

Click on these links for details: (more…)
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