| The Freddie Mac fixed rate for a 30-year mortgage fell slightly last week, dropping from 6.87% to 6.79%. It has stubbornly remained within the range of 6.6% to 7% since last December. |
| Unsurprisingly, this is affecting mortgage applications nationwide. Applications to refinance a home loan fell 2% for the week and were 9% lower than one year ago. Applications for a mortgage to purchase a home dropped 0.2% week-to-week and were down 16% year-over-year. |
| Our take |
| While we’re now heading into Q2 of 2024, the fundamental dynamics of the real estate market haven’t changed since January. Mortgage rates are only going to drop when the Fed cuts interest rates. Until then, we’re all going to have to deal with elevated mortgage rates. This falls heavily on first-time homebuyers, who typically don’t have the income or the equity to leverage. The good news is that these rates aren’t preventing sellers from listing in increasing numbers, and–as we discussed in our first story–they aren’t keeping motivated buyers from getting what they want. |
James and David, The Blueprint
April 02, 2024