The number of purchase mortgages issued in New Hampshire dropped 10.17 percent during the first nine months of 2022, according to The Warren Group, publisher of The Registry Review.

Real estate market data for September contains signs the New Hampshire housing market may be starting to round the corner in the direction of a buyer’s market. 

Single-family homes spent two additional days on market on average last month than they did in September 2021, the New Hampshire Association of Realtors reported, for a total of 23. 

In addition, the total inventory of homes for sale statewide dropped only slightly month-over-month, from 2,249 to 2,171, while the months’ supply of inventory held steady at 1.7 over the same period, albeit lower than this year’s high of 1.9, set in July.  

The average share of list price sellers received last month also dropped, from 101.7 percent in August to 100.7 percent in September, a slight drop from one year ago. 

And month-over-month price growth slowed to a halt. According to The Warren Group, publisher of The Registry Review, the statewide median single-family sale price last month was $425,000, unchanged from August. 

Compared to the heady market of 2021, however, many indicators showed the market has a long way to go to loosen up.  

The median home sale price continued to be significantly higher on a year-over-year basis – 8.97 percent up – compared to September 2021. Year-to-date, the median single-family sale price of $420,000 is 12 percent above the same figure one year ago.  

Statewide, there were 1,392 single-family homes sold last month, 5.82 percent fewer than in September 2021. Year-to-date, there have been 9,356 sold, a 9.38 percent drop over the same figure one year ago.  

Looking ahead, however, the number of new listings that came online in September as the fall homebuying market kicked off was not promising.  

Only 1,494 single-family homes hit the market, an 18 percent drop year-over-year, according to NHAR. 

And pending sales were also off sharply last month, with only 1,351 homes going under agreement. That represents a 20.9 percent drop year-on-year and a significantly larger drop than any month since April. 

Rising Rates Raise Concerns 

While lenders might have started the year expecting some rate hikes, the size and speed of rising mortgage rates had significant effects on borrowers’ behaviors during the spring and summer mortgage markets. 

From the types of mortgage products borrowers sought to homebuyers’ changing expectations, the rapid rise of interest rates during the last few months shifted much from the environment that prevailed during the strong purchase market and refinance boom that dominated the past two years. 

While last year ended with some fluctuations in mortgage rates, they maintained a relatively steady pace last December, with Freddie Mac reporting in the last week of 2021 that the average rate on a 30-year, fixed rate mortgage was 3.05 percent, and on a 15-year, fixed rate loan, it was 2.33 percent. 

But a couple of weeks into 2022, the average rate on a 30-year, fixed rate mortgage had risen to 3.45 percent and to 2.62 percent on a 15-year, fixed rate loan. By late June, they were up to 5.70 percent and 4.83 percent, respectively. 

And this month, the 30-year, fixed rate mortgage soared its highest level since April 2002 at 6.92 percent. The average rate on the 15-year, fixed rate loan was 6.09 percent. 

The more than doubling of mortgage rates in the last 10 months is fueling ongoing concerns about the housing industry. The number of purchase mortgages issued in New Hampshire dropped 10.17 percent during the first nine months of 2022, according to The Warren Group, publisher of The Registry Review. 

“We continue to see a tale of two economies in the data: Strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously,” Sam Khater, Freddie Mac’s chief economist, said in a statement announcing the results of the mortgage-buyer’s most recent weekly survey of interest rates. “The next several months will undoubtedly be important for the economy and the housing market.”