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 slightly this week as demand continues to fall amid the housing price crisis.
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 6.79% last week to 6.82%. A year ago, the average interest rate on a 30-year loan was 6.28%.
At the same time, the average interest rate on a 15-year fixed mortgage fell to 6.06% from 6.11% last week. A year ago, interest rates on 15-year fixed bonds averaged 5.64%.
A for sale sign in front of a home in West Islip, New York, December 13, 2023. (Steve Forst/Newsday RM via Getty Images/Getty Images)
Real estate experts warn that affordability of ‘unmarked’ homes will improve for buyers in the near future
“Since the beginning of 2024, 30-year fixed rate mortgages have not reached 7%, but they have not fallen below 6.6%,” said Sam Cater, chief economist at Freddie Mac.
ResiClub co-founder and editor-in-chief Lance Lambert talks about the U.S. home affordability crisis in “Making Money.”
“While incoming economic data points to a decline in inflation, we do not expect interest rates to fall significantly in the near term,” Carter added. “On the positive side, inventory has improved slightly, which should help limit home price growth.”
Buying the average home in the US now requires a six-figure salary
A combination of persistently rising interest rates and record home prices has kept the housing market stagnant for months.
The Mortgage Bankers Association reported Wednesday that purchase applications fell for the third straight week, putting a damper on what is normally a busy spring season.
View of neighborhood homes in Los Angeles, California, July 5, 2022. (Photo by Frederick J. Brown/AFP via Getty Images)/Getty Images)
Many prospective buyers have given up on purchasing at this point because the price is still outside the market price. His February 2024 Rental Report from Realtor.com found that renting is now more affordable than buying a home in all 50 states.
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At the same time, with 90% of homeowners locked in with low interest rates, many potential sellers are unwilling or unable to move due to the affordability crisis.
