Source: Yahoo! —
U.S. mortgage rates have inched up for the second week in a row, following reports that the economy added a staggering 517,000 jobs and inflation climbed 0.5% in January.
“At this rate, Americans need to put at least 18% down on the purchase of a median-priced home if they don’t want to be cost-burdened,” says Nadia Evangelou, senior economist for the National Association of Realtors (NAR).
While demand has weakened in the face of higher rates, the spring homebuying season could see the average 30-year home loan slide closer to the 6% mark — and buyers return to the market once more.
30-year fixed-rate mortgages
The average 30-year fixed rate rose from 6.12% to 6.32%. A year ago at this time, the rate averaged 3.92%.
George Ratiu, manager of economic research at Realtor.com, believes mortgage rates will gravitate between the 6% to 7% range over the coming weeks.
“For housing markets, the rebound in rates translates into higher mortgage payments from a year ago, but lower than the summer 2022 peak of the market, because prices have dropped 11% over the past 7 months,” writes Ratiu.
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