The Federal Reserve has issued 10 rate hikes since March 2022 in an ongoing effort to tame rampant inflation in the U.S. economy, but after soaring into the 7% range during the fourth quarter of 2022, mortgage rates are now falling. Interest rates for a 30-year, fixed mortgage averaged 6.39% in the week ending May 4, down from 6.43% the week prior, and that slight decrease could signal a slow but steady deceleration ahead.
Median list prices are still 2.4% higher than they were a year ago, and uncertainty from cautious sellers is leading to a slowdown in new listings, but housing experts are optimistic about homebuying conditions in the months to come.
“The 2023 housing market is far from the frenzy experienced over the past two years,” Hale noted. “In other words, sellers do not have all the advantages the way they did over the past two years, but they are still in a very good position.”
Still, Hale takes a glass-half-full view: “Even if market momentum continues to lag behind the past few years,” she said, “the weeks ahead hold plenty of seasonal opportunity for buyers hoping to see some new options.”
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