Eventually, mortgage rates will catch up
Strong levels of job creation, employment, and income should incentivize homebuyers to make their moves now.
Jonathan Smoke, the chief economist of Realtor.com, writes that the nation’s economic growth will eventually lead to a rise in mortgage rates, so people who are thinking of purchasing a home should act soon.
Mortgage rates, which have remained at the same level for the last few months, are expected to increase three times this year. If the economy is really flourishing, the Federal Reserve may raise rates four times.
A lack of available homes for sale may be the real issue for most buyers. According to Smoke, inventory grew 2 percent in February but is down 11 percent over the last year.
Low inventory and strong supply is leading to inventory moving faster and faster as measured by median days on market. The median number of days on market in February was 90 days, six days less than last year. We also saw 27% of all listings selling in less than 30 days. Last year, we saw that happen in mid- to late March, so this year’s timetable is about three weeks ahead.