Mortgage Market Update

Current Mortgage Rates Keep Heading Higher

Buying a house is likely to be a little more challenging still this spring, as mortgage rates continue their climb. With further rises this week, and little expectation of rate relief anytime soon, speculation is intensifying over how high mortgage rates may go and for how long.

The average rate on a 30-year fixed-rate mortgage increased to 6.73%; that’s a change of 0.08 percentage points from a week ago, according to Freddie Mac. The 30-year rate has risen by a total of 0.64 percentage points in the past 5 weeks and now stands at its highest level since the first week of January. The average rate on a 15-year fixed-rate loan also edged up, moving up by 0.06 percentage points to 5.95%

Rising mortgage rates are weighing on the minds of both buyers and sellers. Fannie Mae’s Home Purchase Sentiment Index decreased to 58.0 out of 100. in February, breaking a three-month streak of would-be purchasers feeling better about buying. The sentiment index is now close to its all-time low (of 56.7) seen last October.

According to the report, 79% of those surveyed for the index believe it’s a bad time to buy a home, while 44% said it’s a bad time to sell.

“With home-selling sentiment now lower than it was pre-pandemic — and homebuyer sentiment remaining near its all-time low — consumers on both sides of the transaction appear to be feeling cautious about the housing market,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in a press release.

The cooling in buyer demand has, in particular, led to one bright spot in some cities: more homes coming onto the market. Inventory, or the lack thereof, has been a major factor driving the dramatic growth in home prices over the past two years. Now, as demand slows, some cities are seeing a triple-digit increase in the available homes for sale compared to a year ago. In large part, that trend is due to listings staying on the market longer without going under contract.

As a result, buyers who are still actively looking for a home are finding more options from which to choose. And they’re finding sellers are more willing to give price reductions and other concessions to help close the deal.

If you are offered a rate that is higher than you expect, make sure to ask why, and compare offers from multiple lenders.

TransGlobal, professional and complete All-In-One service for the clients to enjoy. Services from life insurance, annuity, and financial management, to now encompassing mortgage financing, real estate, asset management, health insurance, property & casualty insurance, tax services, and family office & wealth management.

Please contact the local agent of TransGlobal today or call 888-831-8868.

>>Contact Us<<

Your plan will be customized by a professional!