In a wide-ranging interview on Cavuto: Coast to Coast, Corcoran Group founder and Shark Tank star Barbara Corcoran discusses real estate market trends and challenges.
Mortgage rates rose this week to near 7% as the housing market slump shows no signs of easing.
Freddie Mac’s latest Primary Mortgage Market Study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage This week’s rate rose from 6.82% last week to 6.88%. A year ago, the average interest rate on a 30-year loan was 6.27%.
A for sale sign is posted in front of a home in San Francisco, California on April 29, 2022. (Justin Sullivan/Getty Images/Getty Images)
The average interest rate for a 15-year fixed mortgage rose to 6.16% from 6.06% last week. A year ago, interest rates on 15-year fixed bonds averaged 5.54%.
New home sales in the US are down.Median price is lowest in more than 2.5 years
“Mortgage rates have been trending higher through most of this year due to continued inflation and the Federal Reserve’s reassessment of its monetary policy direction,” said Sam Cater, chief economist at Freddie Mac. “While the newly released inflation data for March continues to show little movement, the reaction in financial markets paints a very different picture of the economic picture.”
February 26, 2023 Open House for Homes for Sale in Evesham Twp., NJ. (Fox News)
Carter added: “While it is clear that the trend in inflation statistics has been near flat for nearly a year, the context is much less clear and resembles the unrealized expectations of the recession a year ago. ” he added.
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The combination of persistently rising interest rates and record home prices has kept the housing market stagnant for months, leaving many would-be buyers and sellers on the sidelines as affordability improves.
ResiClub co-founder and editor-in-chief Lance Lambert talks about the U.S. home affordability crisis in “Making Money.”
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Hopes that the Fed would cut interest rates in June were dashed this week when the Labor Department reported that inflation rose again in March, and economists expect mortgage rates to remain high through the rest of the year.
