Mortgage rates rise again, threatening to slow spring housing market
Real estate agent Mauricio Umansky says high mortgage rates, high prices and low supply are creating difficulties for homebuyers on The Claman Countdown.
Mortgage rates continued their upward trend this week, nearing 7% and piling on the unaffordability crisis that threatens to dampen the typical spring buying frenzy.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate on the benchmark 30-year fixed mortgage climbed to 6.90% this week, up from 6.77% last week. The average rate on a 30-year loan was 6.50% a year ago.
The rate on the 15-year fixed mortgage also increased, averaging 6.29% after coming in last week at 6.12%. One year ago, the rate on the 15-year fixed note averaged 5.76%.
An «Open House» flag is seen in front of a home for sale in Alhambra, California, on Jan. 18, 2024. (FREDERIC J. BROWN/AFP via Getty Images) / Getty Images)
REAL ESTATE EXPERT'S ADVICE TO HOMEBUYERS: 'DON'T BUY' YOUR AMERICAN DREAM HOME NOW
«Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market,» Freddie Mac chief economist Sam Khater said in a statement. «The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.»
A «For Sale» outside a house in Hercules, California, on May 31, 2022. Homebuyers are facing a worsening affordability situation with mortgage rates and home prices continuing to rise. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
Buying activity tends to pick up in the spring following slower winter months, but elevated rates and
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