While experts question the health of the housing market, interest rates on home loans were flat this week. The 30-year fixed-rate mortgage averaged 4.45 percent, per Freddie Mac.
Rates have held at this level for three weeks; 15-year adjustable-rate mortgages also held at 3.88 percent. MarketWatch reports that fixed-rate mortgages track the 10-year U.S. Treasury note, which has been volatile of late, due in part to concern over cooling global economies. With rates remaining low, some believe that more buyers will take advantage and purchase a home before further increases, yet existing-home sales "plummeted" in December 2018, hitting a three-year low, signaling that buyers still find the nation's for-sale stock too expensive.
Higher rates in and of themselves probably aren’t enough to quell demand. It’s more likely that some combination of rising rates, sturdy home price gains, a shaky political landscape and uncertain personal tax situations, along with the perennial problem of not enough houses to buy in the price categories where they’re needed, are the primary factors. The question is whether the housing market can overcome most or all of those headwinds in the busy spring season.
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady
