You’ve likely noticed some fluctuating mortgage rates when watching the news recently. It’s easy to tune out when experts talk about fractions of a percentage, but these small differences can have a big effect. When you’re looking at purchasing something as expensive as property, those changes can mean a monthly difference of hundreds of dollars, which could mean a drastic difference in the house that someone might qualify for. That’s why keeping an eye on these changing rates is so important.
So what do these fluctuating rates mean for the housing market? Melissa Dittmann Tracey, real estate expert, and contributing editor, summarizes the recent activity in a recent article at REALTOR® Magazine:
Though mortgage rates inched up this week, they remain below 6.5%, Freddie Mac reported Thursday. The 30-year fixed-rate mortgage averaged 6.43%, up from 6.39% last week. But “with the rate of inflation decelerating, rates should gently decline over the course of 2023,” says Sam Khater, Freddie Mac’s chief economist. “Incoming data suggest the housing market has stabilized from a sales and house price perspective. The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.”
The National Association of REALTORS® is predicting that the 30-year fixed-rate mortgage will fall to 6% by the end of the year and to 5.6% in 2024.
Buyers have shown sensitivity to movement in mortgage rates as they break their budgets to afford high home prices. But low inventory may prove an even bigger obstacle: The spring homebuying season is off to a slow start because buyers can’t find enough options, according to NAR data.
Freddie Mac reports the following national averages with mortgage rates for the week ending April 27:
30-year fixed-rate mortgages: averaged 6.43%, up from last week’s 6.39% average. Last year at this time, 30-year rates averaged 5.1%.
15-year fixed-rate mortgages: averaged 5.71%, dropping from last week’s 5.76% average. A year ago, 15-year rates averaged 4.4%.
When the market changes and mortgage rates are moving daily, it’s important to utilize the expertise of a REALTOR® when looking to buy or sell a property. REALTORS have the tools available to make sure that you get the most out of your investment, not matter what the current conditions might be. That’s Who We R®.