Currently Reading

Mortgage Rates Return to March 2020 Levels

Advertisement
Financing

Mortgage Rates Return to March 2020 Levels


March 19, 2021
Rising mortgage rates
Photo: Андрей Яланский

Mortgage rates increased again this week as the market heads into the busy spring season, but it doesn’t appear to be scaring many buyers away, CNBC says. At the end of January, the average rate on a 30-year fixed mortgage hit a low of 2.75%—it now rests at 3.45%, the same rate as in March 2020. A sizable increase such as this surely prices many buyers out of the market, but it's predicted low housing supply and high demand are here to stay, according to CNBC. What remains questionable is how home prices will react in response. Though the rate is the same now as one year ago, average home prices are in different positions.

Prices are now up over 10% from this time in 2020, according to CoreLogic, and there appears to be no letup in the gains. This is due to the record low supply of homes for sale. 

Homebuilders are not stepping up as much as hoped, because they are facing higher costs for land, labor and materials. They also continue to experience delays in getting materials to job sites, due to Covid. Single-family housing starts came in much lower than expected in February, and the backlog of unbuilt homes is rising.

“There has been a 36% gain over the last 12 month of single-family homes permitted but not started as some projects have paused due to cost and availability of materials,” said Robert Dietz, chief economist of the National Association of Home Builders. “Single-family home building is forecasted to expand in 2021, but at a slower rate as housing affordability is challenged by higher mortgage rates and rising construction costs.”

Read More
 

Related Stories

Economics

What the Federal Reserve Chair Says About Current Inflation Rates

Inflation is “notably” up, according to Federal Reserve Chair Jerome H. Powell, but he notes it’s only a temporary spike. Powell told House…

NAHB

Construction Excluded From New OSHA Standard

NAHB Policy Briefing | NAHB input on OSHA standard to protect workers from COVID-19; real estate values rise

Market Data + Trends

Home Sales Return Strong in May to the Industry's Surprise

In an unexpected turn, home sales came back strong in May after several months of relaxing sales. From April to May, pending home sales increased…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.