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
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development