Payne Capital Management President Ryan Payne weighed in on the U.S. economy, arguing that Americans’ purchasing power will continue to “strengthen.”
Mortgage rates fell for the second week in a row, but economists don’t expect them to fall significantly in the near future.
Freddie Mac’s latest primary mortgage market study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage It dropped from 6.88% last week to 6.74% this week. A year ago, the average interest rate on a 30-year loan was 6.60%.
An “Open House” flag flies in front of a home for sale in Alhambra, California on January 18, 2024. (Frederick J. Brown/AFP via Getty Images)/Getty Images)
The average interest rate for a 15-year fixed mortgage also fell to 6.16% from 6.22% last week. A year ago, interest rates on 15-year fixed bonds averaged 5.90%.
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“30-year fixed-rate mortgages are down again this week, bringing the total down by almost a quarter of a percentage point after two weeks,” said Sam Cater, chief economist at Freddie Mac. “Despite the recent decline, mortgage rates remain high as the market battles persistent inflationary pressures. In this environment, there is a good chance that rates will remain high for an extended period of time. ”
Inventory shortages continue to drive up home prices, leaving many potential buyers unable to afford them. (Nathan Howard/Bloomberg via Getty Images/Getty Images)
Lower interest rates are boosting home purchase offers ahead of the normally busy spring season, but demand remains weak as rising interest rates and record high home prices continue to keep buyers and sellers out of the market. This is still significantly lower than a year ago.
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Mortgage Bankers Association (MBA) Index Applying for a mortgage loan New data released Wednesday showed a 7.1% rise in the week ending March 8, compared with a 9.7% rise in the previous week.
Still, the number of applications is down 11% compared to the same period last year.
Mortgage rates have fallen for the second week in a row, but demand is currently still well below last year as housing affordability continues to weigh on the market. (Photographer: Yuvraj Khanna/Bloomberg via Getty Images / Getty Images)
With no relief in sight from soaring mortgage rates and house prices, it appears at this point that a house price crisis has begun. So potential home buyers will be weighing their options.
“As the spring heats up, some buyers may hold back in hopes of lower mortgage rates, but the choice is There are trade-offs (to buy now or wait).”
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“Spring buyers may expect higher mortgage rates, while summer buyers are likely to expect higher home prices and uncertainty around mortgage rates,” Jones added. .
FOX Business’ Megan Henney contributed to this report.
