Conference Board Chief Economist Dana Peterson says in Making Money that the LEI is great for the commodity economy.
Mortgage rates rose slightly this week, with 30-year fixed-rate bonds continuing to hover in the mid-6% range. The sluggish housing market suggests consumers are still looking to hold off on moving until interest rates come down, and data shows that homebuyer sentiment is overwhelmingly pessimistic at the moment.
Freddie Mac’s latest primary mortgage market study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage This week it rose to 6.64% from 6.63% last week. The average 30-year interest rate was 6.12% a year ago.
A “For Sale” sign outside a home in Teaneck, New Jersey, on November 24, 2022. (Photographer: Yuvraj Khanna/Bloomberg via Getty Images / Getty Images)
At the same time, 15-year fixed mortgage rates fell slightly to an average rate of 5.9.% Last week it was 5.94%. A year ago, the average interest rate on a 15-year fixed bond was 5.25.%.
“The economy and labor market remain strong, with wage growth outpacing inflation, which keeps consumer spending strong,” said Sam Cater, chief economist at Freddie Mac. , noted that interest rates “remain stagnant.”
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“Meanwhile, affordability in the housing market is an ongoing issue due to persistently high house prices, rising mortgage rates, and a limited supply of housing, especially for first-time homebuyers and low-income earners. ‘ he added.
December 6, 2022, Rocklin, CA Homes. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)
Many prospective buyers and sellers are waiting on the sidelines for interest rates to be lowered, with 36% of respondents in Fannie Mae’s latest National Housing Survey released Wednesday finding that they expect interest rates to decrease in the next 12 months. This is the highest ever recorded.
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But the data shows an overwhelming majority think it’s best to hold off on action until that happens, with just 17% saying it was a good time to buy a home in January, a historic Close to the lowest standard.
An “Open House” sign outside a home in Washington, D.C., November 19, 2023. (Nathan Howard/Bloomberg via Getty Images/Getty Images)
The housing market typically recovers for the spring, but demand actually declined last week.
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The Mortgage Bankers Association reported Wednesday that applications for mortgages to buy homes fell 1% compared to the previous week as high mortgage rates continued to limit housing supply. The number of applications is still down 19% compared to the same period last year.
FOX Business’ Megan Henney contributed to this report.
