Renting

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Average mortgage rates were mostly down compared to a week ago, according to rate data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans decreased, while rates for ARM loans rose.

While mortgage rates are still on track to gradually come down this year, the path might be bumpy. Lenders price mortgages based on many variables, but overall, fixed mortgage rates follow the 10-year Treasury yield, which moves as investor appetite fluctuates with the state of the economy and Federal Reserve decisions.

Although the Fed still expects to cut rates 2024, policymakers opted not to at the central bank’s latest meeting, thanks in part to inflation that hasn’t yet returned to the Fed’s 2 percent target.

“The Fed is not in a hurry to start cutting interest rates as the progress toward 2 percent inflation has encountered some turbulence,” says Greg McBride, CFA, chief financial analyst for Bankrate.

The next opportunity for a Fed cut comes in May, the height of the spring homebuying season.

Whether mortgage rates move up or down, though, it’s tough to time the market. Often, the decision to buy a home comes down to needs. Depending on your situation, it might make sense to take a higher rate now and hope to refinance later — buying a home at today’s prices rather than a higher price in the future, while building equity that much sooner.

Rates as of March 28, 2024.

The rates listed here are Bankrate’s overnight average rates and are based on the assumptions shown here. Actual rates displayed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, March 28th, 2024 at 7:30 a.m.

30-year mortgage trends down, -0.05%

Today’s average 30-year fixed-mortgage rate is 6.91 percent, a decrease of 5 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.12 percent.

At the current average rate, you’ll pay principal and interest of $659.27 for every $100,000 you borrow. That’s a decline of $3.35 from last week.

Standard lending practices defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers because it allows the borrower to scatter loan payments out over 30 years, keeping their monthly payment lower.

15-year mortgage rate moves down, -0.07%

The average rate you’ll pay for a 15-year fixed mortgage is 6.42 percent, down 7 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $867 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.

5/1 ARM trends upward, +0.12%

The average rate on a 5/1 ARM is 6.63 percent, rising 12 basis points over the last 7 days.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 6.63 percent would cost about $641 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage retreats, -0.04%

Today’s average rate for jumbo mortgages is 7.02 percent, a decrease of 4 basis points over the last seven days. This time a month ago, jumbo mortgages’ average rate was greater than 7.02 at 7.13 percent.

At the average rate today for a jumbo loan, you’ll pay a combined $666.65 per month in principal and interest for every $100,000 you borrow. That’s down $2.69 from what it would have been last week.

Refinance rates

30-year mortgage refinance rate moves down, -0.05%

The average 30-year fixed-refinance rate is 6.92 percent, down 5 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.10 percent.

At the current average rate, you’ll pay $659.94 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $3.35 lower.

Where are mortgage rates going?

With inflation still above the Fed’s 2 percent goal and the job market holding strong, policymakers refrained from cutting rates at the central bank’s latest meeting. That could change later this year, as the Fed still expects to slash rates three times in 2024.

Keep in mind: The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.

These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.

What today’s rates mean for your mortgage

While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.

To help you uncover the best deal, get at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.

“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”

More on current mortgage rates

Methodology

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.

Source: bankrate.com

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Some Month-End Volatility Late in The Day

By:
Matthew Graham

Thu, Mar 28 2024, 3:22 PM

Some Month-End Volatility Late in The Day

Yields were near 2 week lows 2 hours before the final trades of the day, but rose several bps after that.  The initial gains were driven mainly be economic data (Chicago PMI and Consumer Inflation Expectations), but the month-end trading environment is always a wild card on month-end days.  If month-end buying was a factor, it would make sense to see some pull back when monthly closing levels were marked at 1pm ET.  That’s exactly what we saw.  Fortunately, it wasn’t a big deal for bonds or mortgage lenders. In fact, the entire week was distinctly lacking in volatility. Next week is a different animal thanks to big ticket econ data on 4 out of 5 days.

    • Q4 Final GDP
      • 3.4 vs 3.2 f’cast, 4.9 prev
      • PCE prices 2.0 vs 2.1 f’cast
      • Final sales 3.9 vs 3.5 f’cast
    • Jobless Claims
      • 210k vs 215k f’cast, 212k prev
    • Continued Claims
      • 1819k vs 1807k prev
    • Chicago PMI
      • 41.4 vs 46.0 f’cast, 44.0 prev

09:44 AM

Two way trading after 8:30am data, and now a decent response to Chicago PMI.  10yr up 2bps at 4.208.  MBS down an eighth. 

12:38 PM

Solid gains into the noon hour.  10yr nearly unchanged at 4.192.  MBS down 2 ticks (.06).

01:33 PM

Well off the highs in after hours trading.  MBS down 6 ticks (.19).  10yr up 1.8bps at 4.206.

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

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If you find your dream home, it may be worth purchasing, even with mortgage interest rates as high as they are.

Getty Images


After plummeting during the height of the pandemic in 2020 and 2021, mortgage interest rates have been on a steady upward trend. Thanks to decades-high inflation and a surging benchmark interest rate meant to tame it, mortgage interest rates have risen exponentially, hitting their highest point since 2000 last summer. While they’ve come down slightly since, disappointing inflation reports to start 2024 have resulted in the Federal Reserve keeping interest rates unchanged — and mortgage rates have stagnated. 

That said, today’s mortgage rates are still relatively low, historically speaking. And the hope is high that a reduction in the benchmark interest rate later this year will also lower homebuyers’ rates. But there are some compelling reasons why homebuyers shouldn’t wait for that to happen. Below, we’ll detail three times you may want to buy a home even with interest rates as high as they are.

Ready to get started? See what mortgage interest rate you could qualify for here now.

4 times you should buy a home with interest rates high

Here are four instances in which you should consider buying a home despite higher mortgage rates.

When you find your dream home

Your dream home won’t be listed for sale every day, hence its name. When it does come up for sale, then, many would recommend buying it, even if it comes with a higher interest rate. After all, you could always refinance to a lower rate in the future, when the market stabilizes. 

But, if you wait, you’ll lose out on the opportunity to own a home you truly love — and that opportunity may not arise again soon, particularly in desirable neighborhoods and locations around the country.

Learn more about today’s mortgage rate options online.

When you can afford the higher rate

Crunch the numbers and closely review your budget. You may be surprised at how much you can afford, even with today’s elevated rates. While no one wants to pay more than they should, mortgage interest rates are temporary and subject to change over time. 

So if you can afford the higher rate and want to buy a home now, feel free to do so — and just look for the opportunity to refinance in the future.

When the home price is affordable

If you find a home priced right, or even lower than expectations, it could be worth buying, even with mortgage rates as high as they are. Understand that when mortgage rates eventually do come down, a whole slew of related complications may come into play, including a potential rise in home prices. But if you find an affordable home now, before that happens, it could be worth purchasing.

When the alternative is renting

Renting may be the only recourse for many. But renting is not a long-term investment and won’t build any equity. If this is the current alternative, then, it may be worth purchasing a home if you can afford it instead of renting with no end in sight. 

While it may be more expensive than preferred, there are multiple advantages to owning a home versus renting, from the aforementioned home equity accumulation (which will build immediately) to interest tax deductions each year (which can be substantial at today’s high interest rates) and the potential profit that can be earned when selling.

Learn more about today’s top mortgage options online.

The bottom line

Today’s elevated mortgage rate environment isn’t preferable for homebuyers, but it doesn’t mean that you should refrain from acting, either. If you discover your dream home, can afford the interest rate, find an affordable house, or have an alternative to rent, it can be worth it for you now. Just make sure to crunch all of the numbers — including closing costs — before proceeding so you know exactly what you can afford to buy at today’s rates. 

Matt Richardson

Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.

Source: cbsnews.com

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Welcome to day 4 of our unofficial 9 day weekend with limited data and volatility ahead of an actual 3.5 day weekend.  Is data truly limited if we have Durable Goods?  Perhaps not entirely…  There was a small but noticeable reaction this morning to the stronger result (1.4 vs 1.1). 

But because bonds were only slightly stronger overnight, the slip to modest weakness ends up making things look pretty flat in the bigger picture. 

MBS continue outperforming Treasuries as the latter are being a bit more defensive during the auction cycle.

Source: mortgagenewsdaily.com

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Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.

  • In 2024, homebuyers can expect lower mortgage rates, higher home prices, and a lot more competition.
  • Hopeful buyers should start preparing as early as possible by saving money and paying down debt to improve credit scores.
  • Look into affordable mortgage programs and down payment assistance to boost affordability.

After watching mortgage rates hit two-decade highs and inventory plummet last year, many hopeful homebuyers are eager to get off the sidelines and into a home.

While 2024 is expected to be a better year for the housing market in many respects, a lot of buyers are still going to struggle to find affordability. If you’re planning to buy a house this year, here’s what you need to know about housing market predictions in 2024, and how you can prepare.

Home price predictions 2024

Experts generally expect home prices to increase in 2024.

Low home inventory is a chronic problem in the US. This has generally kept home prices up, even as mortgage rates peaked near 8% and homebuying demand plummeted last year. Demand is expected to increase this year, so even if home prices were to drop in 2024, they likely wouldn’t fall enough to significantly improve affordability on their own.

Mortgage rate predictions 2024 

Here’s where we’ll probably find more affordability in 2024: mortgage rates. Though they’re still relatively high, experts predict we’ll see mortgage rates go down in 2024. The average 30-year fixed mortgage rate is generally expected to end up near 6% by the end of the year.

  • Fannie Mae believes 30-year fixed rates could inch down to the mid-to-upper 6% range during the buying season — which typically lasts from spring through early fall — and reach 6.4% by the end of 2024
  • The MBA’s forecast is slightly less aggressive, predicting that mortgage rates could hover in the 6.3% to 6.6% range during the peak homebuying season before falling to 6.1% to close out 2024
  • NAR predicts rates will be in the mid-6% range for the homebuying season and drop to 6.1% in the last quarter of the year

Whether mortgage rates actually trend down in 2024, and by how much, depends in part on the path the Federal Reserve takes in its fight against inflation.

The Fed has indicated that it may start cutting the federal funds rate this year, which would remove a lot of upward pressure off of mortgage rates and allow them to fall more substantially. But inflation has remained a bit higher than expected in recent months, so we might have to wait longer for a Fed rate cut. This means mortgage rates might not fall in time for the peak homebuying season.

Will the housing market crash in 2024?

Because home prices have increased so dramatically in recent years, doomsayers believe that the housing market is in a bubble, and it’s only a matter of time before it bursts and the market crashes. But it’s actually pretty unlikely that will happen.

One of the main reasons we’re unlikely to see the housing market crash in 2024 has to do with housing inventory. The US simply does not have enough homes to meet demand, which is keeping prices steady. 

Of course, no one has a crystal ball. If demand were to plummet, home prices could start falling. A severe recession could cause this to happen, for example. But even with a recession, it’s not a given that the housing market would crash as a result.

When will the housing market crash?

The fact is, it’s hard to predict a housing market crash. Right now, the conditions aren’t right for one — even though demand is low, supply remains even lower. And demand is expected to improve this year, while supply will likely remain a chronic problem for years to come.

What this means for 2024 homebuyers

If you’re hoping to buy a house this year, you’ll want to start planning now. This year is likely to be better for buyers than 2023 was in many ways, but it’s also going to be more challenging when it comes to prices and competition.

Lower mortgage rates will undoubtedly improve affordability for borrowers, but with that will come increased demand. This will keep home prices high and likely push them up even further. Finding a home in your price range may become even trickier, and you may need to make a lot of offers on homes before you get one accepted.

How to prepare to buy a house in 2024: 5 tips

Here’s what you should be doing now to prepare for homeownership in 2024.

1. Get your finances ready now

Because home prices are likely to remain high, you’ll want to take advantage of lower mortgage rates by making sure you get the lowest rate you can. 

One of the faster methods to get your credit score up is to lower your credit utilization. This will also decrease your debt-to-income ratio, which is another factor mortgage lenders look at when considering what rate to give you.

J.R. Russell, head of direct to consumer mortgage lending at Citi Mortgages, says homebuyers should consider paying off credit card balances to improve their scores ahead of the 2024 homebuying season.

“If you’re trying to pay off or pay down some credit cards, start with the cards or credit lines with the highest interest rates first,” Russell says. “Then, pay off the balances that are smallest. The good news is that if you do this, you’ll improve your debt load and your credit score.”

2. Look for affordable mortgages and other first-time homebuyer assistance

The key to affording homeownership for many buyers in 2024 will be utilizing mortgages geared toward first-time homebuyers and combining them with grants or other forms of down payment assistance.

“If you’re not sure that your down payment will be sufficient, take time to understand all of the available products that you may be eligible for through the FHA or VA, your bank, or other local institutions,” Russell says. “These programs may grant you access to down payment assistance and low-to-moderate income programs, among other game-changing resources.”

Conventional loans allow down payments as low as 3%, while FHA loans allow 3.5% down payments. USDA and VA loans allow no down payment. 

Look into lenders that offer special mortgage programs that come with additional assistance. Rocket Mortgage, for example, offers a ONE+ mortgage that allows borrowers to put down just 1%, with the lender providing a 2% grant.

Bank of America mortgages, another popular lender for first-time buyers, offers a couple of different forms of down payment assistance.

3. Time your purchase right

There probably won’t be a single “best time” to buy in 2024, because that depends on each buyer’s priorities — so it’s important that you figure out yours.

If getting the lowest rate possible is most important to you, you’ll want to wait until later this year to buy, possibly until the second half of 2024. But if you’re looking to avoid competition, buying within the next few months might be a better bet. Plus, you could always plan to refinance later on as rates drop.

4. But don’t rush

“If rates do start to moderate and the market does seem to become more favorable to buying in 2024, it will likely stay this way for a while,” Russell says. “If that’s the case, I encourage you to take your time! Don’t put pressure on yourself to make any potentially hasty decisions on what may be your biggest asset and the largest financial decision of your life.”

Though it’s still a while away, forecasts generally expect mortgage rates to continue falling in 2025. If you don’t feel ready to buy by the time the 2024 buying season rolls around, there’s nothing wrong with waiting a bit to continue saving and working on your credit.

5. Build your savings

Whether you’re padding your mortgage down payment savings or contributing to your emergency fund, tucking away some extra cash now is vital if you plan on buying a home soon.

When you buy a house, you’ll need enough cash to cover both your down payment and closing costs, which can amount to between 3% and 6% of the loan amount. While many mortgage programs allow low down payments, the more you can put down, the better your interest rate will likely be. Plus, offers with larger down payments are often more attractive to home sellers, giving you a competitive edge in what will likely be a tough market.

Homeownership is also often more expensive than many first-time buyers realize, especially in the first year. Having some extra money set aside for unexpected costs will help ensure you don’t go into debt when your first big housing expense comes along.

Housing market predictions 2024 FAQs

Experts expect mortgage rates to drop in 2024, and 30-year fixed rates could end the year closer to 6%.

There probably won’t be a housing recession in 2024 based on current expectations, as limited inventory is likely to push prices up further. Expect to see higher prices, lower mortgage rates, and more buyers in 2024.

In general, 2024 should be a better year to buy a house compared to 2023, but it will still be tough due to increased competition and higher prices.

Molly Grace

Mortgage Reporter

Source: businessinsider.com

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After moving back under 7% last week (conventional, 30yr fixed, top tier scenario), mortgage rates have been increasingly unlikely to move.  Today was the 2nd day in a row with essentially no change for the average lender.

Rates are driven by bonds and bonds are waiting on the most relevant economic data to offer a comment on the path of inflation and the economy in general.  If inflation falls a bit more or if the economy shows marked signs of weakening, it would tip the scales in favor of lower rates.

Most of the data in question will be released next week.  This week is sparse by comparison.  Today’s data was mixed and it wasn’t highly consequential in the first place.  Tomorrow is essentially data-free.  Thursday brings several reports, but again, nothing substantial.  With Friday being a holiday, the takeaway is that volatility is a much more relevant risk next week.  

Source: mortgagenewsdaily.com

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Looking for the most up-to-date mortgage rates to empower your purchasing or refinancing decisions? We’ve got you covered.

Here, you can view today’s mortgage interest rates, updated daily according to data from Bankrate, so you can have the most current data when purchasing or refinancing your home.

30-year fixed rate mortgages

The average mortgage interest rate for a standard 30-year fixed mortgage is 6.98%, an increase of 0.10 percentage points from last week’s 6.88%.

Thirty-year fixed mortgages are the most commonly sought out loan term. A 30-year fixed rate mortgage has a lower monthly payment than a 15-year one, but usually has a higher interest rate.

15-year fixed rate mortgages

The average mortgage interest rate for a standard 15-year fixed mortgage is 6.47%, an increase of 0.06 percentage points from last week’s 6.41%.

Fifteen-year fixed rate mortgages come with a higher monthly payment compared to its 30-year counterpart. However, usually interest rates are lower and you will pay less total interest because you are paying off your loan at a faster rate.

5/1 adjustable rate mortgages

The average rate on a 5/1 adjustable rate mortgage (ARM) is 6.51%, an increase of 0.13 percentage points from last week’s 6.38%. With an ARM, you will most often get a lower interest rate than a fixed mortgage for say, the first five years.

But you could end up paying more or less after that time depending on your loan terms and how that rate follows the market.

What is the best term for a loan?

When picking a mortgage, it is important to pick out a loan term or payment schedule. Usually you will be offered a 15 or 30-year loan term, but it is not uncommon to see 10, 20, or 40-year mortgages, according to CNET.

Mortgages can be fixed-rate or adjustable-rate. Interest rates in fixed-rate mortgages are set in stone for the duration of the loan.

Adjustable-rate mortgages only have interest rates set for a certain period of time before the rate adjusts annually based on the market.

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Source: nj.com

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Mixed Performance. Data Hurt. Auction Helped. Little Changed

By:
Matthew Graham

Tue, Mar 26 2024, 4:14 PM

Mixed Performance. Data Hurt. Auction Helped. Little Changed

In the bigger picture, bonds found resistance before 10yr yields managed to break below 4.19, but remained well under the 4.32% ceiling after yesterday’s weakness.  Today began slightly stronger, but shifted weaker after the Durable Goods data.  The home team rallied after the 1pm Treasury auction came out on the strong side and trading levels trickled just barely into positive territory.  Wednesday is the quietest day of the week for econ data, but also the last day of Treasury auctions and the last full trading day of the month/quarter.  Translation: data driven volatility is unlikely, but random volatility surrounding the auctions and month-end trading could make things interesting.

    • Durable Goods
      • 1.4 vs 1.1 f’cast, -6.9 prev

08:52 AM

Slightly stronger overnight and now a hair weaker after data.  MBS down 2 ticks (.06) and 10yr up 0.8bps at 4.257

11:26 AM

MBS outperforming, down only 1 tick (.03).  10yr unchanged from last update.

01:09 PM

Stronger after 5yr auction.  MBS up 2 ticks (.06) and 10yr down 1.1bps at 4.238

03:32 PM

Hanging out near strongest levels.  MBS and 10yr at same levels as last update.

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

Apache is functioning normally

Mortgage rates surged closer to 7% this week, a blow to hopeful homebuyers this spring.

The rate on the 30-year fixed mortgage increased to 6.87% from 6.74% the week prior, according to Freddie Mac. Rates tilted higher as inflation remained hotter than expected, leading to the Fed putting off any potential rate cuts until summer.

The uptick in rates caused some rate-sensitive homebuyers to retreat from the market, as affordability remains a top concern for the entry-level pool. Those looking to refinance also backed away from their plans as the chances of grabbing a lower rate slipped away.

Still, housing experts remain hopeful about the direction of affordability as more inventory trickles into the market.

“The housing market continues to face elevated mortgage rates, high prices, and low for-sale inventory,” said Hannah Jones, senior economic research analyst at Realtor.com. “As the spring season approaches, many buyers and sellers are getting warmed up to enter the housing market.”

Demand falters as rates jump higher

As mortgage rates rebounded, both refinance and purchase activity faltered — a recurring theme this season.

The volume of applications to refinance a home fell 3% for the week ending March 15 and was 3% lower than the same week a year ago, according to the Mortgage Bankers Association (MBA).

Demand for refinance had gained surprising momentum in the weeks leading up to March 8, with applications up 12%. The sudden jump in activity was due to a larger 24% increase in the government refinance index, the MBA noted, as homeowners who purchased at top rates last year were closely attuned to any opportunity to snatch a lower rate.

But as rates rebounded this week, that window of opportunity closed.

Read more: Mortgage rates hover around 7% — is this a good time to buy a house?

Purchase applicants also retreated from the market, with the volume of applications to buy a home down 1% for the week and 14% lower than the same week a year ago.

“Most homebuyers are sensitive to interest rates, which is why we see mortgage applications increase when rates fall and decline with rates increase,” said Bright MLS chief economist Dr. Lisa Sturtevant.

“However, not all homebuyers are equally sensitive to interest rates,” she added. “The number of cash buyers has increased. In many markets, these cash buyers are not investors but regular home buyers who have accrued significant equity in an existing home that they can roll over into the purchase of a new home.”

Just getting into a home has become more expensive. Mortgage News Daily, which tracks rates daily, revealed that rates surpassed 7% last week and have remained above that threshold as of March 20.

People looking at houses for sale in a real estate agent’s window. (Credit: Mike Kemp/In Pictures via Getty Images) (Mike Kemp via Getty Images)

For first-time homebuyers, in particular, the fluctuation of rates has been a tough blow — especially as inventory of entry-level homes remains scarce and competition for homes within their price point is picking up.

According to the National Association of Realtors, the average price of a previously owned home increased to $384,500 in February, marking the eighth consecutive month of year-over-year price gains. The median price was also 5.7% higher than a year earlier.

“Additional housing supply is helping to satisfy market demand,” said NAR chief economist Lawrence Yun. “Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices.”

Buyers and sellers need to adjust to ‘new normal’ in rates

Mortgage rates were elevated after data last week showed inflation and payroll numbers came in stronger than expected, which fueled concerns about the timing of the Fed’s plans to issue rate cuts this year.

Federal Reserve officials expect three interest rate cuts this year, which should help ease pressure on overall borrowing costs when they come to pass. However, when those rate cuts will happen remains to be seen.

“There is some uncertainty in the housing market as we head into spring,” said Sturtevant. “The Federal Reserve likely will put off rate cuts until the summer, which suggests that mortgage rates will not come down much in the first half of the year. Buyers and sellers seem to be adjusting to the ‘new normal’ of mortgage rates above 6.5%.”

A sign is posted in front of a home for sale on Feb. 5 in San Anselmo, Calif. (Credit: Justin Sullivan, Getty Images) (Justin Sullivan via Getty Images)

Still, there’s some hope that buyers will see mortgage rates start to ease sooner rather than later.

“As we enter the spring homebuying season, we still anticipate rates will decrease in the coming months,” said MBA president and CEO Bob Broeksmit.

Gabriella Cruz-Martinez is a personal finance and housing reporter at Yahoo Finance. Follow her on X @__gabriellacruz.

Click here for real estate and housing market news, reports, and analysis to inform your investing decisions.

Source: finance.yahoo.com

Apache is functioning normally

Monday marks the start of a holiday-shortened week (early close on Thursday and fully closed on Friday) and the beginning of a week that will conclude with month/quarter end trading.  This doesn’t guarantee any specific outcome for the bond market, but it does increase the odds of random volatility unrelated to fundamental market movers.  That said, there will be a few fundamental market movers to digest.  These include a condensed Treasury auction cycle (2/5/7yr on Mon-Wed) and a few mid-tier econ reports, mostly on Thursday.  The week’s most interesting plot twist is the release of February PCE inflation on the Friday closure.  We can get an idea of the reaction in the futures markets, but it won’t officially be traded until next Monday.

Today’s trading is off to a weaker start with Treasuries underperforming (one would assume due to the auction cycle).  10yr yields continue to be very well behaved inside key technical levels with 4.19 offering a resistance bounce to last week’s rally.  

Source: mortgagenewsdaily.com