Mortgage Rates Settle, Buyer Confidence Rises
Good Monday Morning!
Real estate markets have historically been a roller coaster, shifting from strong, active home sales to sluggish and challenging conditions. Rarely do we see rapid changes in the real estate market. Recovery from slow markets can be painfully gradual, often marked by ups and downs, but with an overall upward trend. This is exactly the kind of market we find ourselves in today. The days of 2.5% and 3% mortgage interest rates are gone—and most likely won’t return anytime soon, if ever. As we all adjust to the new norm of higher mortgage interest rates, we can expect more ups and downs. However, the overall market is expected to trend upward as the economy adapts to these new rates. As our economy improves over the next several years, we can look forward to a robust housing market returning, with interest rates that may resemble what we’re seeing today. The following is an update from the National Association of Realtors (NAR) on how our current housing market is responding to recent mortgage rate trends.
Over the last month, mortgage rates have seen only slight moves, but that could be enough to give prospective buyers the confidence to make a move.
The signs of a livelier market may be starting to pop up. The number of mortgage applications for purchase rose last week to its highest level since the end of January—and the number has climbed from levels a year ago, according to the Mortgage Bankers Association’s seasonally adjusted index.
Less volatility in mortgage rates—which have settled in the mid-6% range—may be helping home buyers feel more comfortable planning ahead for a purchase. “Over the last month, the 30-year fixed-rate has settled in, making only slight moves in either direction,” says Sam Khater, Freddie Mac’s chief economist. “This stability is reassuring, and borrowers have responded with purchase application demand rising to the highest growth rate since late last year.”
Mortgage applications for a home purchase—a gauge of future home buying activity—ticked up by 2% in the latest week and are up by 9% compared to a year ago, according to the MBA.
“Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook,” says Joel Kan, MBA’s deputy chief economist.
Mortgage Rate Averages This Week
Freddie Mac reports the following national average mortgage rates for the week ending April 3:
- 30-year fixed-rate mortgages: averaged 6.64% this week, falling slightly from last week’s 6.65% average. A year ago, 30-year rates averaged 6.82%.
15-year fixed-rate mortgages: averaged 5.82%, dropping from last week’s 5.89% average. Last year at this time, 15-year rates averaged 6.06%.
Have An Awesome Week!
Stay Healthy! Stay Safe! Remain Positive! Trust in God!
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