Ramp up the Homebuying Season

Stable Rates, Mortgage rates continued to hold steady this

 week according to the Freddie Mac Primary Mortgage Market Survey that was released on Thursday.

The data indicated that the 30-year fixed-rate mortgage averaged 4.42 percent and was only slightly up from 4.40 percent last week. The 30-year fixed-rate mortgages were at 4.08 percent during the same period last year.

The stability in the mortgage rates bodes well for homebuyers looking at making a purchase this buying season. “For now mortgage rates are still quite low by historical standards, helping to support homebuyer affordability as the spring homebuying season ramps up,” Kiefer said.

And homebuyers remain undeterred by rates this season according to Realtor.com. “Home buyers remain largely undeterred by the rate increases we’ve seen since the beginning of the year making competition fierce. Homes in March sold 7 percent faster than last year and were 8 percent more expensive,” Hale said.

“March buyers had 8 percent fewer homes to choose from which has contributed significantly to these price gains and fast time on the market. In spite of the challenges, home shoppers remain optimistic. Seven in ten shoppers surveyed in March expected to purchase their home by the end of 2018.”

But will this stability last? This remains the big question. “Rates could break out and head higher. The U.S. Bureau of Labor Statistics reported this week that the Consumer Price Index increased 2.4 percent over the 12 months ending in March, the largest 12-month increase in a year,” Kiefer said. “ We may see two or three more rate hikes from the Fed this year, and mortgage rates could follow.”

Hale agrees: “Rate increases are expected for most of 2018, as the Fed responds to the anticipated strength of the economy. Long-term rates have thus far shrugged off the Fed’s moves, and mortgage rates have followed suit.”

Source: Freddie Mac