Mortgage rates rise as demand continues to slide
Mortgage applications have dropped for three straight weeks as rates continue to hover near 7%
The cost of housing in America will continue going up: Barbara Corcoran
In a wide-ranging interview on ‘Cavuto: Coast to Coast,’ The Corcoran Group founder and 'Shark Tank' star Barbara Corcoran addresses market trends and challenges in real estate.
Mortgage rates increased slightly this week as demand continues to wane amid the ongoing housing affordability crisis.
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage rose to 6.82% this week from 6.79% last week. The average rate on a 30-year loan was 6.28% a year ago.
At the same time, the average rate on the 15-year fixed mortgage ticked down to 6.06% after coming in last week at 6.11%. One year ago, the rate on the 15-year fixed note averaged 5.64%.
A "for sale" sign is seen in front of a home in West Islip, New York, on Dec. 13, 2023. (Steve Pfost/Newsday RM via Getty Images / Getty Images)
REAL ESTATE EXPERT WARNS ‘NO SIGNS’ HOUSING AFFORDABILITY WILL IMPROVE FOR BUYERS IN NEAR FUTURE
"Since the start of 2024, the 30-year fixed-rate mortgage has not reached seven percent but has not dropped below 6.6 percent either," said Sam Khater, Freddie Mac’s chief economist.
Housing affordability is at worst level in four decades: Lance Lambert
ResiClub co-founder and editor-in-chief Lance Lambert discusses the U.S. housing affordability crisis on 'Making Money.'
"While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term," Khater added. "On the plus side, inventory is improving somewhat, which should help temper home price growth."
SIX-FIGURE SALARY NOW NEEDED TO BUY AVERAGE US HOME
The combination of persistently elevated rates and record-high home prices has left the housing market stalled for months.
The Mortgage Bankers Association reported Wednesday that purchase applications have fallen for three consecutive weeks, putting a damper on the typically busy spring season.
A view of houses in a neighborhood in Los Angeles on July 5, 2022. (FREDERIC J. BROWN/AFP via Getty Images / Getty Images)
Many would-be buyers remain priced out of the market and have given up on making a purchase right now. Realtor.com's February 2024 Rental Report found it is now more affordable to rent than to buy a home in all 50 states.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
At the same time, many potential sellers are unwilling or unable to move due to the affordability crisis, as 90% of homeowners are locked in at lower rates.