Prospective homebuyers face the reality of elevated mortgage rates as they soar above 7%, reaching a new high for the year, according to Freddie Mac. The average rate on a 30-year fixed loan climbed to 7.1%, reflecting a significant increase from the previous week’s 6.88%.
Daily rate fluctuations have been even more pronounced, with Mortgage News Daily reporting a daily average rate of 7.43% on Thursday. This surge, up from barely 7% at the beginning of the month, underscores the ongoing pressure on homebuyers amidst an inflationary environment.
While the rise in rates has prompted some urgency among potential buyers to secure their purchases before rates climb further, the market remains uncertain. Purchase applications saw a modest increase, indicating a mix of buyer strategies in response to the evolving rate landscape.
Despite the uptick in purchase activity, existing home sales saw a decline of over 4% in March, with the median price for existing homes reaching $393,500, marking the ninth consecutive month of year-over-year increases. This trend persists across all four US regions, signaling continued challenges for buyers amid elevated rates and tight inventory.
As buyers navigate these challenges, the housing market awaits further developments, with the potential for rate fluctuations and economic indicators shaping the trajectory of the spring season.
Featured Image: Freepik
