After weeks of steady declines, the average interest rate for a 30-year mortgage rose to 6.39% last week amid shifting market expectations. Home prices are beginning to stabilize, but waning for-sale inventory and rates above 6% are forcing would-be homebuyers to reconsider their purchasing plans, The National Association of Realtors reports.
A recent study by John Burns Real Estate Consulting revealed that 71% of prospective buyers are unwilling to make a move in the for-sale market until rates drop to a sweet spot of 5.5%.
The lift in mortgage rates this week comes after some calming in the banking sector, says Nadia Evangelou, NAR’s senior economist and director of real estate research. After recent bank closures, the economy has faced a lot of uncertainty. “Mortgage rates are expected to continue to fluctuate in the coming months, affecting both housing affordability and sales activity,” Evangelou says.
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