Source: Realtor.com —
Although the Federal Reserve hiked interest rates on Wednesday, mortgage rates veered in the opposite direction and tumbled.
For the week ending March 23, the nationwide average for the popular 30-year fixed-rate mortgage was 6.42%, according to Freddie Mac. That’s down from last week—and it’s the lowest level in more than a month.
It’s a small reprieve and much-needed break for homebuyers, but don’t look for it to last. When the Fed raises rates, mortgage rates usually rise in kind.
“Economic conditions will keep upward pressure on rates,” notes Sabrina Speianu, economic data manager for Realtor.com®, in her recent analysis. This “will continue to present an affordability challenge for buyers and may keep some sellers, who are locked in at lower rates, waiting on the sidelines.”
In this installment of “How’s the Housing Market This Week?” we’ll take a look at the housing market stalemate, what it’ll take to get moving, and what this all means for both homebuyers and sellers.
Home prices are plateauing
Although home prices are still inching up, they’re starting to level off.