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.”
Advertisement
Related Stories
Affordability
Is Fractional Homeownership Any Kind of Solution for Housing Attainability?
The imbalance between housing supply and demand is spurring some innovative new options within the real estate industry
Housing Markets
States Seek Long-Term Solutions to Reform Property Taxes
Rising home prices typically lead to higher property tax assessments, which has been the case in many Mountain West states, prompting lawmakers to grapple with property tax relief
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities