For those looking for homes in Irving, the most common question these days is this: "With interest rates rising again in October, is it better to buy now or rent for another year?"

To get straight to the point, what changed significantly in October was not home prices but interest rates. Home prices and rents have remained relatively stable without major fluctuations.

First, let's clarify the reference point. The MLS transaction statistics for Irving in October are typically released around mid-November. Therefore, this article is based on the MLS report from September released in October and updated rent and interest rate data until the end of October.

The first thing to check is the mortgage rates. According to Freddie Mac's weekly survey, the average rate for a 30-year fixed mortgage was 7.03% in the last week of September, but it jumped to 7.28% in the announcement on October 1.

Then, on October 8 and 15, it rose to 7.40%, before slightly decreasing to 7.32% on the 22nd and 7.24% on the 29th. The 15-year fixed rate was 6.60% as of October 29.

Since the end of September, this represents a fluctuation of over 0.3 percentage points, so if you have pre-approval, be sure to check if your monthly payment needs to be recalculated. Although it may seem small in numbers, the difference can be quite significant for a 30-year loan.

The Federal Reserve held the benchmark interest rate steady at a range of 3.75% to 4% during its meeting on October 28. The vote was 10 to 2, with the two dissenters actually wanting a 0.25 percentage point increase.

Honestly, I found this part a bit disappointing. The emergence of voices calling for an increase rather than a decrease signals that it may be difficult to expect mortgage rates to drop significantly by the end of the year.

So, how did home prices fare? According to the NTREIS September report compiled by the Texas A&M Real Estate Research Center, the median sale price for single-family homes in Irving was $395,000.

This is an increase compared to $355,000 in September of last year. However, the median price from the previous month, August, was $440,250.

While it appears to have dropped by over $40,000 in just one month, Irving typically sees around 80 transactions per month, so the median price can fluctuate significantly depending on which neighborhoods had more sales. Therefore, I prefer to look at the monthly median price alongside inventory and days on market.

In September, there were 81 single-family home transactions in Irving, slightly up from 76 in the same month last year. The number of listings on the market increased to 327 from 289 last year.

The absorption period for inventory was 4.2 months, longer than last year's 3.9 months, and the days on market (DOM) was 44 days. The ratio of actual sale price to listing price was 93.9%.

The number I've been paying attention to is the pending sales. As of September, there were 52 properties under contract, a noticeable decrease from 85 in the same period last year.

Pending sales are indicative of transactions that will occur in one to two months, suggesting that the transaction volume in October and November may be weaker than last year. This coincides with the period when interest rates rose to the mid-7% range, which is likely not a coincidence.

For reference, across the DFW area, there were 6,759 single-family home transactions in September, a 7% decrease from last year, with a median price of $385,000, down 1%. In September alone, Irving held up better than the metro average in terms of prices.

Now, let's talk about rents. According to RentCafe, which aggregates data primarily from apartments, the average rent in Irving was reported at $1,513 as of the update on October 30.

This is nearly the same level as $1,511 a year ago. By unit type, the average rent for a one-bedroom was $1,330, for a two-bedroom was $1,731, and for a three-bedroom was $2,197.

Rent for single-family homes is somewhat different. According to the MLS September data, the median rent for single-family homes in Irving was $2,800, down from $3,000 in September last year.

On the other hand, the number of rental listings decreased to 89 from 116 last year, and the time to contract also shortened from 47 days to 35 days. While prices have dropped, it indicates that good homes are moving quickly.

So, for those looking to rent right now, here's a summary: there is still room for negotiation on apartments, while for single-family homes, it's better not to hesitate if you find one you like.

If you're looking to buy a home, there are a few more items to check. First, ask your lender about the rate lock period and fees again.

Second, the fact that the transaction ratio is 93.9% indicates that there may be room to negotiate down from the listing price. It might also be worth considering requesting seller credits to buy down the interest rate.

Third, even within Irving, prices can vary significantly by neighborhood. Don't judge properties in Valley Ranch or Las Colinas the same way as those in South Irving; make sure to get recent transactions based on your desired zip code.

If it's for investment purposes, the calculations become more stringent. While the median rent for single-family homes has decreased, the loan rates are in the 7% range, making it tighter to match cash flow with rental income compared to last year.

If I were choosing a home in Irving right now, I wouldn't rush. In a time when inventory is increasing and days on market are lengthening, buyers can choose their conditions, so I would likely opt to narrow down my options and build up my negotiation cards until the end of the year when rates are fluctuating.

I will check the actual transaction numbers for October once the MLS report comes out in mid-November and compare them. It will become clearer then whether the decrease in pending sales has led to a decrease in actual transactions.