Although the Fed is working to increase interest rates and fight inflation, the 10 year treasury has fallen giving us a drop in mortgage rates down such that the 30 year fixed mortgage rate is now at 5.5%. This is down from the high of 6.28%. Good news for the general mobility of our market as buyers begin to recalibrate this market.
This is coupled with increasing inventory and oh by the way, have you seen the year over year growth numbers? The only expression that is appropriate to describe our year over year growth is to insert your preferred expletive of choice because we were at 45% in some market places!!! This is absolutely insane. It'll be interesting to continue to track our year over year growth. With mortgage rates going up, hopefully this begins to curb some of this insane year over year growth such that we reach more manageable levels of growth. Otherwise, it's like we're all on a treadmill that is going faster and faster and we're just hoping that it doesn't speed up beyond our capacity.
We've already seen inventory increasing. We've finally begun to see price reductions. We're finally beginning to reach a more normal market. 45% year over year increases are not normal. I know people are on recession watch. That's definitely poor language surrounding our changing market. Our market is changing and becoming more normal where we have more than a month of inventory. We got down to less than a month supply of inventory. This is not normal. What is normal is six months of inventory.
Stay tuned for more data supporting a normalized market.