This article discusses the continued slow growth of the housing market due to higher mortgage rates, despite a strong economy and low unemployment numbers. While experts have indicated the spring months are historically some of the most active for the housing market, these higher mortgage rates have taken some steam off of any potential activity.
The article opens with a look at the most recent Freddie Mac Mortgage Market survey, which showed that the 30-year fixed mortgage rate average rose to 4.44%, the 12th consecutive week rates have increased. While this number is still lower than last year’s average of 4.58%, any increases in rates will ultimately ease home buyers’ buying power, making the cost of homeownership more difficult.
In addition to the higher mortgage rates, experts have cited increasing housing prices as a potential hurdle for first-time home buyers, as many of these buyers may find current prices out of their range. Prices have been steadily rising over the past few years, making it harder for first-time buyers to build equity.
The analysts in the article indicate that while a strong or weak spring housing market will largely depend on mortgage rates, recent positive news on the economic front may turn the tables in favor of a strong market. If the strong economy remains steady, analysts are predicting a strong market in the months to come, with minimal increase in mortgage rates in the near future.
You can read this full article at: https://www.housingwire.com/articles/higher-mortgage-rates-dim-hope-for-a-busy-spring-housing-market/(subscription required)
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