According to the Mortgage Bankers Association, mortgage applications are down 5% since last week. With mortgage rates rising and median home prices trending in the same direction, the downward trend in home sales (down 4.5% year over year) appears to be continuing. In March 2022, the National Association of Realtors found that median home prices rose 15% year-over-year to $375,300. Rising interest rates combined with low home inventory dampened hope for buyers across the United States
Freddie Mac reported this week that the average lending rate for a 30-year fixed mortgage reached 5.11%. This is only a 0.11% increase from last week. Nonetheless, continued rate hikes appear to be dampening many people’s home ownership ambitions.
“Ongoing concerns about rapid inflation and tighter US monetary policy continued to push Treasury yields higher, pushing mortgage rates to their highest level in more than a decade. Rates rose to all levels for all types of loans, with the 30-year fixed rate reaching [nearly] 5.2%, the highest level since 2010,” said Joel Kan, MBA associate vice president of economic and industry forecasting.
To help you stay up to date on the market, ZeroDown has compiled a weekly real estate market report using data from Redfin. The stats are from the four weeks ending April 17, 2022. Metros with more than 50 homes sold during that time period were considered for metro-level rankings for each statistic.