{"id":4787,"date":"2024-03-08T05:29:54","date_gmt":"2024-03-08T05:29:54","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2024\/03\/08\/mortgage-rates-just-dropped-but-the-housing-market-got-even-better-news-this-week\/"},"modified":"2024-03-08T05:29:54","modified_gmt":"2024-03-08T05:29:54","slug":"mortgage-rates-just-dropped-but-the-housing-market-got-even-better-news-this-week","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2024\/03\/08\/mortgage-rates-just-dropped-but-the-housing-market-got-even-better-news-this-week\/","title":{"rendered":"Mortgage Rates Just Dropped\u2014but the Housing Market Got Even Better News This Week"},"content":{"rendered":"

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Realtor.com \/ Getty Images<\/p>\n

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Mortgage rates dropped this week after pushing dangerously close to 7%.<\/p>\n

The average rate for a 30-year fixed home loan ticked down from 6.94% to 6.88% for the week ending March 7, according to Freddie Mac.<\/p>\n

\u201cEvidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,\u201d Sam Khater<\/strong>, Freddie Mac\u2019s chief economist, said in a statement. \u201cMortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market.\u201d<\/p>\n

In addition to falling mortgage rates, the housing market got another burst of good news this week: a whole lot of listings flooding the market.<\/p>\n

Might this double dose of encouraging information entice more home shoppers to get out there? We\u2019ll explore what the latest housing statistics could mean, plus some forecasts for the weeks ahead, in this installment of \u201cHow\u2019s the Housing Market This Week<\/a>?\u201d<\/p>\n\n

The mortgage rate outlook<\/h2>\n

Many homebuyers and sellers have become preoccupied with the U.S. Federal Reserve, which has been adjusting interest rates in its ongoing battle against stubborn inflation.<\/p>\n

In late February, the Fed chose to hold rates steady rather than raise or lower them. Since then, mortgage rates have been on the rise. (Fed rates are not directly tied to mortgage rates, although the two numbers often move in the same direction.)<\/p>\n

These rising rates have persuaded some homebuyers to downshift into wait-and-see mode.<\/p>\n

\u201cMany buyers are considering whether to purchase a home now, or hold off for lower rates,\u201d Realtor.com senior economic research analyst Hannah Jones<\/strong> says in her most recent analysis<\/a>.<\/p>\n

Looking ahead, projections from the Realtor.com\u00ae 2024 forecast<\/a>\u00a0suggest that rates will maintain an average of around 6.8% throughout the year. There is a possibility of a decline to approximately 6.5% by the end of the year.<\/p>\n

More clarity on the course of rates could unfold when the Federal Reserve meets again on March 20 and 21.<\/p>\n

\u201cDespite the central bank\u2019s projection of potential rate cuts in 2024, pinpointing the optimal timing for such a shift has been a challenge,\u201d says Realtor.com economist Jiayi Xu<\/strong> in a statement. \u201cSpecifically, the risk of a dangerous inflation rebound is looming if rate cuts are made \u2018too soon or too much.\u2019 However, if the rate cuts are \u2018too late or too little,\u2019 it could have adverse effects on the economy.\u201d<\/p>\n

Housing inventory hits a four-year high<\/h2>\n

The week ending March 2 experienced a whopping 19.9% more properties actively for sale compared with last year\u2019s levels.<\/p>\n

\u201cThe February Realtor.com Housing Trends Report<\/a> showed that 2024 had the most abundant level of inventory since 2020,\u201d says Jones.<\/p>\n

Specifically, the number of newly listed homes fresh to market rose annually by 17.4% for the week ending March 2, marking a 19-week streak upward.<\/p>\n

\u201cThis may be even better news for home shoppers than the overall growth in active inventory because a jump in new listings means new options\u2013vitally important for shoppers with a specific must-have list,\u201d explains Jones. \u201cAs the spring market picks up, more sellers tend to enter the market, and this early pickup could mean even more options for buyers.\u201d<\/p>\n

With more homes to choose from, buyers aren\u2019t wasting much time in making an offer when they see something they like. For the week ending March 2, the typical home spent two fewer days on the market compared with this time last year. (Homes spent 61 days on the market in February.)<\/p>\n

\u201cMore home options mean more buyers are finding what they are looking for, so homes continue to move relatively quickly,\u201d says Jones.<\/p>\n

Yet the bigger picture on the housing supply side is still stark, with the number of homes on the market down nearly 40% compared with the pre-pandemic years from 2017 to 2019.<\/p>\n

Home list prices remain stuck<\/h2>\n

Homebuyers worried about mortgage rates can at least take comfort in the fact that home prices seem to have stalled.<\/p>\n

For the week ending March 2, \u201cthe median home listing price was flat compared to the same week last year,\u201d says Jones. \u201cThis is the first week during which prices have not climbed annually since October 2023.\u201d<\/p>\n

Indeed, ever since mortgage rates have pushed higher, annual median listing price growth \u201chas floated lower since early 2024,\u201d Jones explains.<\/p>\n

Nationally, the asking price on homes hovered at a median of $415,500<\/a> in February.<\/p>\n

The post Mortgage Rates Just Dropped\u2014but the Housing Market Got Even Better News This Week<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Realtor.com \/ Getty Images Mortgage rates dropped this week after pushing dangerously close to 7%. The average rate for a 30-year fixed home loan ticked down from 6.94% to 6.88% for the week ending March 7, according to Freddie Mac. \u201cEvidence that purchase demand remains sensitive to interest rate changes was on display this week,…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":4788,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/4787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=4787"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/4787\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/4788"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=4787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=4787"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=4787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}