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Mortgage Rates
Since the start of the year, mortgage rates have raced from the 3 percent range and past 4 percent to more than 5 percent, reaching that benchmark months or even years ahead of schedule, depending on which forecaster you ask. The average rate for a conforming 30-year fixed rate mortgage hit 5.05 percent Wednesday.
The new rates represent a sudden departure from the remarkably low rates of the last two years, when the Federal Reserve was scooping up mortgage-backed securities and holding interest rates low in an effort to stimulate an economy hobbled by the effects of a deadly viral outbreak.
But while a return to higher rates was expected eventually, the speed at which they returned to the 5 percent range surprised forecasters and rattled homebuyers
The bottom line is, it could still be a great time to look into buying. Please reach out for more information
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April Update
Pending home sales slipped last month, marking five consecutive months of transaction decreases, according to the National Association of Realtors. All four regions registered a decline in year-over-year contract activity.
The Pending Home Sales Index (PHSI),* www.nar.realtor/pending-home-sales, a forward-looking indicator of home sales based on contract signings, waned 4.1% to 104.9 in February. Year-over-year, transactions dropped 5.4%. An index of 100 is equal to the level of contract activity in 2001.
"Pending transactions diminished in February mainly due to the low number of homes for sale," said Lawrence Yun, NAR's chief economist. "Buyer demand is still intense, but it's as simple as ‘one cannot buy what is not for sale.'"
Along with climbing home prices, Yun added that now buyers must grapple with rising mortgage rates and noted that shoppers will likely want to lock in before rates increase further.
"It is still an extremely competitive market, but fast-changing conditions regarding affordability are ahead," he said. "Consequently, home sellers cannot simply bump up prices in the upcoming months, but need to assess the changing market conditions to attract buyers."
In summation, there are still transactions that are happening, just in a different way than a few months ago. If you are interested in learning more, please call me.
Annual Walk MS Coming Soon!
I'm proud to be sponsoring another Walk MS Team again this year! In 2022, the event returns to Downtown Cleveland. Please join me for the fundraiser, or please think about a donation to a wonderful non-profit.
