Mortgage interest rates climbed to 6.73% for a 30-year fixed-rate mortgage during the week ending March 9, a tough blow for prospective buyers hoping for an improvement in affordability after a series of rate hikes at the close of 2022. The most recent uptick means today’s homebuyers will have to pay almost 50% more per month for their homes than they would have just a year earlier, and stubborn inflation may lead to even more increases over the coming months, Realtor.com reports.
Climbing housing costs threaten to undermine a market recovery at the start of what many housing experts had hoped would be a healthy spring buying season.
“Recent signs of a housing bottom have been encouraging, but the still-shifting financial and economic landscape makes it hard to pinpoint whether the floor is firm enough to withstand these new challenges,” says Realtor.com Chief Economist Danielle Hale in her most recent analysis. “In the meanwhile, that means housing activity is likely to continue roughly in line with its recent low pace of sales.”
Advertisement
Related Stories
Townhomes
Townhome Construction Gains in Popularity as Buyers Seek Medium-Density Housing
Townhouses made up 18% of single-family housing starts during Q1 2024
Housing Markets
5 Housing Markets That Would See a Huge Increase in Homeownership if Mortgage Rates Dropped
Spokane, Wash., would experience an 11.4% increase in affordability if rates dropped to 6%
Housing Markets
Spring Housing Markets: Which Markets Saw the Most Appreciation, and Which Saw the Least?
Florida metros saw the weakest appreciation of all housing markets in the US