Mortgage Rates Fall for Second Week, But Affordability Concerns Persist
According to the latest Primary Mortgage Market Survey from Freddie Mac, mortgage rates have dropped for the second consecutive week. The average rate on a 30-year fixed mortgage fell to 6.74% from 6.88% the previous week, while the average rate on a 15-year fixed mortgage decreased to 6.16% from 6.22%.
Despite this recent dip, mortgage rates are still at historically high levels due to inflationary pressures. The decrease in rates has sparked an increase in home-purchase applications, with the Mortgage Bankers Association reporting a 7.1% rise in their index of mortgage applications for the week ended March 8. However, overall application volume is down 11% compared to the same time last year.
The housing market continues to grapple with affordability concerns as high rates and soaring home prices persist. With no relief in sight, potential home buyers are left facing the decision of whether to buy now or wait for rates to potentially drop further.
Spring buyers may find themselves dealing with higher mortgage rates, while summer buyers could be confronted with higher home prices and uncertainty surrounding rates. The housing affordability crisis seems to be here to stay for the time being, making the decision of when to buy a home all the more challenging for hopeful homeowners.
