Still, mortgage professionals on the ground continue to note an elevated pace of application and homebuying activity with borrowers seemingly accustomed to the high-rate environment of recent times.
Mortgage rates in the US have risen for the fourth consecutive week, reaching an average of 7.17% for 30-year fixed loans.https://t.co/7m4K777J6b
— Mortgage Professional America Magazine (@MPAMagazineUS) April 29, 2024
“From a real estate market standpoint, it’s actually very similar to the last few springs,” Banosian said of the current market. “Rates are elevated, obviously – it’s very similar to what happened in 2020 to 2023. And here we are in 2024: rates are up and the market is still moving very, very fast.
“There’s a lot of demand for homes in the United States. The demand far exceeds the supply and because rates are up, that’s a constraint on inventory because there’s a lot of homeowners that aren’t going to enter the market. They don’t want to leave behind their rates in the twos, threes and fours.”
First-time buyers need all the help they can get in current market
Bidding over asking price, quick closes, and waived contingencies are as common as ever in the current market – which, unsurprisingly, is presenting plenty of hurdles for first-time homebuyers.
Elevated home prices and a glut of qualified competition mean those new buyers are facing as difficult a time as ever securing a property to buy.
Source: mpamag.com