Home values soared in the past few years, as the pandemic reshuffled people’s housing needs, and buyers clamored for the few listings available. To cool that demand — and tame inflation throughout the economy — the Federal Reserve has been hiking rates at the fastest pace in decades. Those moves sent mortgage rates surging past 7% last fall, and while they’ve pulled back somewhat, the 30-year fixed rate is still around 6.35%, Freddie Mac.
The number of new listings hitting the market are also far below normal levels, as millions of homeowners decide not to budge. Down more than more than 32 percent from pre-pandemic levels.
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The 30-year Fixed-rate Mortgage Reverts from Last Week
The 30-year fixed-rate mortgage averaged 6.39 percent this week, as economic crosscurrents have kept rates within a ten-basis point range over the last several weeks. After the substantial slowdown in growth last fall, home prices stabilized during the winter and began to modestly rise over the last few months. This indicates that while affordability remains a hurdle, homebuyers are getting used to current rates and continue to pursue homeownership.
