Boston mortgage rates curb home sales

Home sales were down 19.1% year over year in the Boston metro area, per RE/MAX’s February report.

Why it matters: In 2022, potential buyers were desperate for more inventory. Now, homes are hitting the market but people can’t afford them.

What’s happening: Rates for a 30-year loan were at 6.09% in early February, and shot up to 6.65% by the end of the month, per Freddie Mac.

By the numbers:

• Sales were down 15.4% in February compared to January.
• Inventory has crept up 15.6% since last February as sales have slowed.
• It took an average of 31 days to sell a home last February. In February 2023, it took 36.
• The median sale price went up 1.4%, from $550,000 to $557,500.

Zoom out: Because there’s less competition right now, buyers don’t have to front as much cash as they did a year ago, Axios’ Emily Peck reports.

Between the lines: Buyers who can afford these mortgage rates have more power.

• They have more options than a year ago, they can take their time searching and they can make offers that aren’t wildly above list price.

Yes, but: These rates make buying unaffordable for many.

What's next: Mortgage rates dropped nearly a quarter point this month, which means buyer activity will likely pick back up.