Norfolk County Register of Deeds William P. O’Donnell reported that Norfolk County recordings for the month of September 2024 indicate an increase in overall real estate activity, with increases in the total number of deeds and mortgages recorded as compared to September 2023.
The Registry of Deeds recorded 8,605 documents in September 2024. This was 6% more than in September 2023, and an 8% decrease compared to August 2024.
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| Norfolk County Registry of Deeds: Lower Mortgage Interest Rates Drive Increased Lending Activity |
“The rise in real estate activity in September 2024 compared to September 2023 can be attributed to a significant increase in the number of mortgages recorded this month," noted Norfolk County Register of Deeds William P. O’Donnell. "Likely due to the availability of mortgages at interest rates, according to the Federal Home Loan Mortgage Corporation, not seen since September 2022.”
In September, lending activity increased compared to the same month a year ago. A total of 1,331 mortgages were recorded in September 2024, up 13% from September 2023 and down 8% from the previous month.
“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. "The Federal Reserve's decision to lower the federal funds rate has an indirect impact on mortgage interest rates, so if hints of a continued decrease in the federal funds rate are seen, we may see lending activity continue to rise."
The total number of deeds recorded for September 2024, which reflects both commercial and residential real estate sales and transfers, was 1,301, up 4% from September 2023 and down 13% from August 2024.
"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. It will be interesting to see how the housing market evolves in the coming months as these factors continue to play out."
The average sale price of commercial and residential properties for September 2024 rose to $960,254, an 11% increase compared to September 2023 but a decrease of 24% from August 2024. The total dollar volume of commercial and residential sales is also up, increasing by 9% from last year but down 41% from last month.
“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.
The Norfolk County Registry of Deeds has been closely monitoring the foreclosure market. In September 2024, there were 7 foreclosure deeds recorded as a result of mortgage foreclosures taking place in Norfolk County, more than the 5 recorded in September 2023. In September 2024, there were 28 notices to foreclose, the first step in the foreclosure process, less than the 33 recorded in September 2023.
“We cannot begin to know all the causes that have contributed to these foreclosures and notices to foreclose, but what we do know is that a number of our neighbors have lost their homes, and even more are dangerously close to losing their homes,” said Register O'Donnell. “We all experience unforeseen events in our lives, and sometimes events beyond our control can have devastating emotional and financial effects, so I would urge anyone struggling to pay their mortgage or who knows someone who is struggling to contact one of the non-profit organizations listed on our website, www.norfolkdeeds.org.”
For the past several years, the Norfolk County Registry of Deeds has partnered with Quincy Community Action Programs (617-479-8181 x376) and NeighborWorks Housing Solutions (508-587-0950) to help anyone facing challenges paying their mortgage. Another option for homeowners is to contact the Massachusetts Attorney General’s Consumer Advocacy and Response Division (CARD) at 617-727-8400.
O’Donnell concluded, “There is no doubt that it is good to see that mortgage interest rates have come down significantly over the past month, and good to know that some progress has been made in making the dream of owning a home a more attainable goal. However, it remains to be seen if these lower rates will be enough to stimulate significant growth in the housing market, especially for those who are already locked into lower rates."
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The Norfolk County Registry of Deeds, located at 649 High St., Dedham, is the principal office for real property in Norfolk County. The Registry is a resource for homeowners, title examiners, mortgage lenders, municipalities, and others with a need for secure, accurate, and accessible land record information. All land record research information can be found on the Registry's website, www.norfolkdeeds.org. Residents in need of assistance can contact the Registry of Deeds Customer Service Center at (781) 461-6101 or email us at registerodonnell@norfolkdeeds.org.
