Good news on mortgage interest rates helps fuel Green Bay, Appleton housing markets

GREEN BAY - Green Bay, Appleton and Oshkosh area homebuyers still face rising prices and competition in key price points as the summer winds down.

But they should benefit from more homes for sale and declining mortgage interest rates as fall arrives.

Statewide home sales in July increased almost 5%, new listings increased by 2.7% and the median purchase price increased 8.3%, according to Wisconsin Realtors Association (WRA) sales data. Sales increased in the Green Bay and Oshkosh areas and declined slightly in the Appleton area, but all three regions saw inventory increase and remain on pace to increase sales this year.

The biggest news for buyers and sellers, though, is mortgage interest rates continued a downward trend that began in May. The 15-year and 30-year fixed mortgage rate as of Aug. 22 dropped to 5.6% and 6.46%, respectively, according to Freddie Mac's weekly Primary Mortgage Market Survey .

"The recent increase in new listings has led to a slight moderation in our price appreciation over the last year, and although mortgage rates have remained stubbornly high, we’ve seen the 30-year fixed mortgage rate fall for a second straight month," said WRA CEO Tom Larson in a media release. "Hopefully these trends continue and lead to improved affordability."

Here's a closer look at what to know about northeastern Wisconsin housing markets.

Mortgage interest rates are lower, but how much can I save?

Mortgage interest rates peaked in October 2023 at 7% and 7.8% for 15- and 30-year loans, respectively, and current rates are about 1.4 percentage points lower. It might not sound like much, but it can make a noticeable difference in the monthly mortgage bill, said Tom Zellner, Nicolet National Bank's senior vice president and mortgage director.

How much?

A 1 percentage point change in the mortgage rate generally adds or subtracts about $48 per month per $100,000 borrowed. That means a 1 percentage point decrease on a $300,000 mortgage would reduce buyers' monthly payment by $140-$150.

Buyers and sellers find interest rates in the 5% or 6% range "more palatable," Zellner said. Buyers see the lower interest rates and a lower mortgage payment while sellers may be more willing to sell their home knowing they can finance a new purchase at a more affordable rate now.

"It’s putting more buyers in the market again so as rates come down, more buyers will come out," Zellner said. "The hope is as we see rates go down that more people become willing to sell their house."

Home sales dip in Appleton, remain strong year-to-date

Outagamie County, home to Appleton, in July saw existing home sales drop by 2% to 157. But year-to-date Fox Cities area home sales that through May were up 45% are now up 31% through July 2023.

The Outagamie County median sale price in July increased 9.6% to $315,000 while the year-to-date median purchase price rose to $305,000.

Oshkosh, Neenah, Menasha area sees home sales surge

July was Winnebago County's time to shine.

Home sales in the Oshkosh and Neenah-Menasha areas in July increased 27.3% to 205. Year-to-date Winnebago County home sales are up 8.4% to 1,080.

The county's median sale price in July increased 11% to $275,000 while the year-to-date median purchase price rose 4% to $256,000.

Green Bay area increases in home sales, prices mirror Wisconsin trends

The Brown County area did not see the decline Outagamie did nor the spike in sales in Winnebago.

Instead, the Green Bay area's housing market seems to mirror the statewide one across most of the key metrics, with a little variation here and there.

Wisconsin in July recorded a 4.8% increase in sales, inventory increased to 3.6 months, and the median purchase price rose to $325,000.

Brown County saw a 5% increase in sales, an increase in inventory to 3.4 months and a median purchase price that rose to $350,000.

Inventory is up, but not in the price ranges where demand is highest

Inventory is a measure based on how long it would take to sell all the homes currently for sale in a given market. It helps show whether a housing market favors buyers (more than six months), sellers (less than six months) or is balanced (six months).

Inventory overall has continued to increase in the Green Bay, Appleton and Oshkosh areas this year as more people put their homes up for sale. But the homes being put up for sale are not at price points where demand is highest.

Right now, 51% of all homes for sale in Wisconsin are listed at prices higher than $350,000 and one in every four homes for sale (26.6%) in Wisconsin are for sale for $500,000 or more. But in the last 12 months, only 37.3% of all homes sold in the state sold for more than $350,000.

But 55% of all homes sold in the last 12 months were at prices between $125,000 and $350,000, price ranges more affordable to a wider share of buyers on the market.

Contact Jeff Bollier at (920) 431-8387 or jbollier@gannett.com . Follow him on Twitter at @JeffBollier .

This article originally appeared on Green Bay Press-Gazette: Good news on mortgage interest rates helps fuel Green Bay, Appleton housing markets