For sellers, sales continue to remain stable due to a continued short supply of homes to satisfy the buyer demand. However, increasing mortgage rates have reduced the number of buyers willing to make extravagant offers in a competitive bidding situation. Going forward, sellers listing their home above market value may have very few showings and see no offers.
If you’re looking to buy a home, the days of low interest mortgages below 4% have passed. Recent inflation has translated into higher interest rates with increased monthly payments. Mortgage rates have increased consistently since the start of 2022 when they were at 3.5%.
As of today (October 1st) the rate for a 30-year conventional mortgage is 6.82%.
Inflation, home prices and higher mortgage rates are impacting affordability. Causing many homebuyers to stop looking. Buyers who made unsuccessful offers during the Spring 2022 market may need to adjust their budget and their expectations. The table below illustrates the difference in monthly mortgage payments for a few common mortgage amounts.
| Mortgage Amount | 30-year @ 6.82% (October 2022) | 30-year @ 3.5% (March 2022) |
| $150,000 | $979.88 | $673.56 |
| $200,000 | $1306.50 | $898.08 |
| $250,000 | $1633.14 | $1122.61 |
| $300,000 | $1959.77 | $1347.13 |
Home sales in the Lansing area market remain normal for this time of year and the statistics are consistent with previous years. Of course, things may change, but rents have been steadily increasing, making it economically cheaper to buy than to rent.
Lansing Area Market View – October 1, 2022
• 714 currently listed homes for sale in the five county greater Lansing area.
• 287 homes with accepted offers. Awaiting inspections and/or appraisal.
• 351 homes listed as Pending. Have completed inspections and will soon close.
• 5161 homes that have closed since January 1, 2022.
• 7150 homes that have closed in the past 12 months.
Mortgage interest rates
30-year fixed – 6.82% ($6.53 per $1000)
15-year fixed – 5.97% ($8.89 per $1000)