• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick As home sellers and buyers wait on a Fed cut, here’s how mortgage rates have affected the spring housing market
Editor's Pick

As home sellers and buyers wait on a Fed cut, here’s how mortgage rates have affected the spring housing market

by May 1, 2024
by May 1, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

People looking to buy or sell a home this spring are paying close attention to mortgage rates.

The average 30-year, fixed-rate mortgage rose to 7.17% for the week ended April 25, according to Freddie Mac data via the Federal Reserve. The rate was 7.10% the prior week.

Buyers and sellers may not see any relief soon.

It remains unclear when the Fed might make its first rate cut. Experts anticipate policymakers will continue to hold rates steady in this week’s meeting and will trim borrowing costs in the second half of the year.

“I believe our first rate cut is penciled in for July,” said Matthew Walsh, assistant director and economist at Moody’s Analytics.

Until then, average mortgage rates might continue to bounce around between 6.5 to 7.5%, Walsh said.

“We might not see rates fall in any meaningful way until [the] later half of this year,” he said.

Rates will keep ‘buyers and sellers on their toes’

“The biggest thing when we’re looking at mortgage rates right now is volatility,” said Nicole Bachaud, a senior economist at Zillow Group.

While some buyers have come to terms with 7% interest rates, the volatility of rates is “really the thing that’s going to impact the [housing] market the most,” Bachaud said.

When rates bounce around from week to week, a buyer looking into a house one day might not be able to afford the same property the next day, she said.

The swinging movement of rates is “going to keep buyers and sellers on their toes for longer than expected,” Bachaud explained.

For example, a homebuyer hoping to secure a $400,000, 30-year fixed-rate mortgage might have gotten a rate of about 6.82% in early April, according to Freddie Mac and Fed data. That works out to a monthly mortgage payment of around $2,613. Two weeks later, rates were hovering at 7.10%. That slightly higher rate adds $75 to the monthly mortgage payment, or $27,000 over the life of the loan.

Even a 1 percentage point difference may not sound like much, but it can mean almost $200 more on a monthly mortgage payment, said Jacob Channel, a senior economist at LendingTree.

Would-be buyers are paying attention to the math. For the week ended April 19, the mortgage application demand dropped 2.7% compared with a week earlier, as average 30-year fixed-rate mortgages jumped from 7.13% to 7.24%, according to recent data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

“The spring housing market this year is somewhat getting back to normal,” Bachaud said.

Some areas are experiencing more sales with buyers getting used to the higher rates and looking for ways to make it work, she said.

Even so, more sales are expected to happen at the end of May and early June, she said.

That’s also when sellers tend to get the best prices. To that point, in 2023, homes listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical U.S. home, according to an earlier Zillow analysis.

“I’d say we’d probably also see a later spring season this year,” Bachaud said.

This post appeared first on NBC NEWS
You Might Also Like
  • Jerome Powell indicates Fed won’t wait until inflation is down to 2% before cutting rates
  • Chick-fil-A is releasing its own entertainment app, with family-friendly shows and podcasts
  • Education Department error could lower U.S. students’ financial aid amounts
  • Sony and Apollo send letter expressing interest in $26B Paramount buyout as company considers Skydance bid
Share
0
FacebookTwitterPinterestWhatsapp

previous post
McDonald’s rising prices pushing some diners away
next post
Affluent Americans are driving U.S. economy and likely delaying need for Fed rate cuts

You may also like

Clorox says last month’s cyberattack is still disrupting production

September 19, 2023

FreeWave Leverages ORBCOMM’S Satellite IoT Technology To Automate Remote Industrial...

March 13, 2023

A short government shutdown wouldn’t crash the economy, but a...

October 3, 2023

Red Lobster files for bankruptcy, but restaurants will stay open

May 21, 2024

Macy’s turnaround hinges on revamping some stores and closing others....

March 7, 2025

Hasbro forecasts as much as $300 million impact if China...

April 25, 2025

Self-driving Cruise vehicle accused of nearly hitting kids in two...

February 15, 2024

How the Inflation Reduction Act sparked a manufacturing and clean...

August 20, 2024

Bissell recalls 3.2 million handheld steam cleaners after scores of...

July 23, 2024

There’s been a ‘meaningful shift’ in CEO confidence since Trump’s...

January 15, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Elon Musk and Sam Altman spar...

    January 25, 2025

    Big businesses rally to preserve their...

    April 22, 2023

    Americans are flocking to Texas: 9...

    July 24, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here