Many prospective home buyers do their research regarding an area's "median sales price" before embarking on their house hunt. Based on the statistical data, they establish expectations for how
Mortgage Rates Tick Up While Inventory Remains Low
Wondering what the uptick in mortgage rates and down-slide in housing inventory might mean for you during this year's home buying season? According to this Washington Post article released today, the market is expected to remain strong though finding your dream home is becoming more and more challenging. Now more than ever, this is the time you need the team at House Hunters Realty Group working to get the job done!
Mortgage Rates Rise While Pending Home Sales Dip
The 15-year fixed-rate average rose to 3.27 percent with an average 0.4 point. It was 3.23 percent a week ago and 2.89 percent a year ago. The five-year adjustable rate average reached 3.12 percent with an average 0.4 point, up from 3.1 percent last week. It was 2.86 percent a year ago.
“The 10-year Treasury yield rose about 10 basis points this week,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“The 30-year mortgage rate moved with Treasury yields, rising 6 basis points to 4.03 percent,” he added. “Despite recent swings in mortgage rates, the housing market continues to show signs of strength — both existing and new home sales in March exceeded expectations, and the Case-Shiller Home Price Index posted another solid gain.”
Analysts are looking at another data set — contracts signings for listed homes — as an indicator of a strong spring housing market. Though pending home sales across the country dipped 0.8 percent in March, according to a National Association of Realtors (NAR) report released Thursday, the figures are the third highest in the past 12 months.
“We’re seeing low inventory every month and the situation seems to be moving in the wrong direction. It’s a pretty challenging situation for buyers, but contract activity is still at a high level,” Danielle Hale, NAR’s managing director of housing research, said in an interview.
“I think the housing market is quite strong this spring. We updated our forecast — instead of a growth of 2 1/2 percent, we bumped it to 3 1/2 percent,” Hale added. “We had expected home prices to increase 4 percent this year and now we’re expecting 5 percent.”
Hale said the higher mortgage rates shouldn’t dampen enthusiasm for most buyers. The boost from 3.97 percent to 4.03 percent, she said, should add only about $6.50 to $8 more per month to a mortgage payment.
Meanwhile, mortgage applications were up last week, according to the latest data from the Mortgage Bankers Association. The market composite index — a measure of total loan application volume — rose 2.7 percent. The refinance index rose 7 percent. The purchase index rose 0.1 percent.
The refinance share of mortgage activity accounted for 44 percent of all applications, a 1.6 percent increase from the previous week.
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Wondering what the uptick in mortgage rates and down-slide in housing inventory might mean for you during this year's home buying season? According to this Washington Post article released,