Mortgage Rates Climb: Will Homebuyers Give Up?



With rates expected to stay high, buyers may find hope in growing inventory and more options, but affordability remains a challenge.

Mortgage interest rates are expected to remain elevated as we head into the final weeks of the spring homebuying season. According to Freddie Mac, the 30-year fixed-rate mortgage has risen for the fifth consecutive week, reaching an average of 7.22% — a level last seen in late November. This is a significant increase from a year ago when rates averaged 6.39%. The 15-year fixed-rate mortgage has also seen a rise, averaging 6.47% this week compared to 5.76% a year ago.


Mortgage Rates Climb: Will Homebuyers Give Up?

The Federal Reserve has been keeping interest rates at elevated levels due to high inflation and a strong labor market. While the Fed initially indicated three rate cuts in 2024, the persistence of inflation may make multiple cuts less likely.

Despite having more homes to choose from, potential buyers seem to be holding back due to the elevated rates. Mortgage applications have seen a decline, with purchase applications down 14% compared to a year ago. However, adjustable rate mortgages are becoming more popular as buyers anticipate a decrease in rates.

The increase in inventory has given homebuyers more options, with inventory climbing 30.4% annually in April. Homes priced between $200,000 and $350,000 have seen a 41% increase compared to the previous year. Altos Research has observed a rise in inventory and more new contracts than in any week in 2023, which could potentially lead to softer home prices later in the year.

While Redfin's homebuyer demand index is down 9% year-over-year, touring activity is on the rise. This presents an opportunity for buyers who can afford current mortgage rates to enter the market. The next update on inflation on May 15 will provide more insight into the duration of this "higher for longer" period.

The housing market continues to be influenced by elevated mortgage rates and high inflation. Potential buyers are faced with a decision to wait for rates to decrease or take the plunge into the market. The coming weeks will reveal whether the current trends will persist or if there will be a shift in the market dynamics.

Mortgage Rates Climb: Will Homebuyers Give Up?

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone


Dutch Home Prices to Rise 14% by End 2026; De Nederlandsche Bank Predicts No Recession

De Nederlandsche Bank forecasts a 6% increase in Dutch home prices this year, with a steady 4% rise in the next two years. No more fear of recession for the Dutch economy.

De Nederlandsche Bank forecasts a 6% increase in Dutch home prices this year, with a steady 4% rise in the next two years. No more fear of recession for the Dutch economy.

Read more

Discover Why Costa Blanca Still a Top Choice for Foreign House Buyers in Spain

Discover why ALICANTE province, particularly the Costa Blanca, remains a top destination for foreign investors looking to invest in real estate in Spain, with 44% of property transactions in 2023 carried out by non-Spaniards.

Discover why ALICANTE province, particularly the Costa Blanca, remains a top destination for foreign investors looking to invest in real estate in Spain, with 44% of property transactions in 2023 carried out by non-Spaniards.

Read more

America's Rental Market: Regions with Climbing and Falling Rents

Discover the latest data on rental market trends in America, including regions where rents are on the rise and where they are falling.

Discover the latest data on rental market trends in America, including regions where rents are on the rise and where they are falling.

Read more

Purpose-Built Rentals: The Future of Commercial Real Estate?

Discover the future of commercial real estate with purpose-built rentals as highlighted in the latest Re/Max report. Explore how landlords are shifting towards this trend for increased density and profitability.

Discover the future of commercial real estate with purpose-built rentals as highlighted in the latest Re/Max report. Explore how landlords are shifting towards this trend for increased density and profitability.

Read more

US Homeowners Experience Near-Record Highs in Home Equity Growth

Discover the latest CoreLogic report findings showing US homeowners gaining an average of $28,000 in home equity over the past year.

Discover the latest CoreLogic report findings showing US homeowners gaining an average of $28,000 in home equity over the past year.

Read more

Rare Low-Rise City Centre Homes Portfolio Hits UK Residential Real Estate Market

Explore the latest update on the UK residential real estate market with the launch of a unique portfolio of 262 single-family houses in city centres, designed for institutional ownership in the UK rental real estate market.

Explore the latest update on the UK residential real estate market with the launch of a unique portfolio of 262 single-family houses in city centres, designed for institutional ownership in the UK rental real estate market.

Read more

Rise in Landlords Investing in Semi-Commercial Real Estate

Discover why investors are flocking to semi-commercial real estate, with applications doubling in 2024. Learn more in our latest blog post.

Discover why investors are flocking to semi-commercial real estate, with applications doubling in 2024. Learn more in our latest blog post.

Read more

Nearly Half of Landlords Planning to Buy More Properties | Landbay Survey

Landbay's latest survey shows strong landlord demand, with nearly half looking to purchase more properties in the next year.

Landbay\'s latest survey shows strong landlord demand, with nearly half looking to purchase more properties in the next year.

Read more

Canada: Montreal Home Sales Increase as Prices Surge

The Montreal real estate market sees a rise in home sales, with prices on the upswing. Find out more about the latest trends in the region.

The Montreal real estate market sees a rise in home sales, with prices on the upswing. Find out more about the latest trends in the region.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.