Drop in Mortgage Interest Rates Spurred September Real Estate Activity, But First-Time Buyers Still Challenged, Says Register O'Donnell

Thanks to Norfolk County Registry of Deeds for sharing this news with Westwood Minute.

Both real estate activity and average sale price of commercial and residential properties has increased this past September, compared to September 2023, reported Norfolk County Register of Deeds William P. O’Donnell in Dedham late last week.

Mortgages in September 2024 numbered 1,331, up 13% from September 2023 but down 8% from August 2024. The average sale price of commercial and residential properties in September 2024 rose 11 percent compared to September 2023 to $960,254, but was down 24 percent from August 2024. The total dollar volume of commercial and residential sales this September was also down 41 percent compared to the prior month of August, according to the Registry.

“The positive trend in the number of mortgages recorded compared to last year is a sign that the recent drop in mortgage interest rates has made borrowing more attractive for potential homebuyers and borrowers, especially considering that this time last year we were seeing 31% fewer deeds year over year." O'Donnell added.

"Lower mortgage interest rates can potentially open the market to additional buyers who previously may not have been able to afford a home. However, those who took out a mortgage at lower interest rates in 2020 and 2021 may still feel locked into their current mortgages, limiting the potential impact that the recent reductions in interest rates may have on home sales," he said.

“While lower mortgage interest rates do help ease the burden of higher real estate costs, I think many would agree that it is a difficult market for buyers, especially first-time home buyers, due to the limited inventory of available property and an increase in property prices compared to previous years,” stated Register O’Donnell.

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