Mortgage Rates Ease This Week

Mortgage Rates Ease This Week
Freddie Mac   article by Daily Real Estate News | April 6, 2018

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Borrowers found some relief for the second consecutive week with lower mortgage rates.

“After dropping earlier this week on trade-related anxiety in financial markets, the benchmark 10-year Treasury stabilized on Wednesday, but at a level slightly lower than from the start of last week,” explains Len Kiefer, Freddie Mac’s deputy chief economist. “Mortgage rates followed and fell for the second consecutive week. … Though rates on the 30-year fixed mortgage are up 0.3 percentage points from the same week a year ago, a robust labor market is helping home purchase demand weather modestly higher rates.”

The Mortgage Bankers Association reported in its latest Weekly Mortgage Applications Survey that its index for home purchase applications is up 5 percent from a year ago “indicating that this spring is on track for a modest expansion in purchase mortgage activity,” Kiefer adds.

Freddie Mac reported the following national averages for the week ending April 5:

  • 30-year fixed-rate mortgages: averaged 4.40 percent, with an average 0.5 point, dropping from last week’s 4.44 percent average. Last year at this time, 30-year rates averaged 4.10 percent.
  • 15-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.4 point, dropping from last week’s 3.90 percent average. A year ago, 15-year rates averaged 3.36 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.62 percent, with an average 0.4 point, falling from last week’s 3.66 percent average. A year ago, 5-year ARMs averaged 3.19 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 040618

Nationally: March Listing Prices Surpass 2017 Record

Nationally: March Listing Prices Surpass 2017 Record
realtor.com   article by Daily Real Estate News | April 5, 2018

House 1039The median list price for homes nationwide this March have now topped a record high set in 2017. The median list price was $280,000, up 8 percent year over year in March, topping last July’s record of $275,000, realtor.com® reports.

Not only are home prices higher but homes are also selling faster this year. Days on the market dropped 7 percent compared to last year, reaching a median of 63 days in March. There are also fewer homes for sale, with inventories of homes for sale dropping 8 percent, according to realtor.com®’s report, which is based on for-sale data culled from U.S. MLSs.

“Our latest inventory data tells us buyers are out in full force this spring,” says Javier Vivas, director of economic research for realtor.com®. “Never in history have there been more eyes on fewer homes than today.”

Vivas says that half of the homes selling this summer will likely be listed above $300,000.

“Buyers are not just paying more for the same home; the mix of homes in the market is rapidly changing,” he adds.

Housing inventories between $200,000 and $350,000 remain low, and homes under $200,000 are even harder to find, realtor.com® notes.

“March housing trends show the inventory depletion we’ve seen over the last two buying seasons is carrying over to this year,” realtor.com® notes in a release. “It’s going to be a languid search for buyers this season as they face the harshest, most competitive buying conditions yet.”

Source: realtor.com®; REALTOR® Magazine Online, Daily Real Estate News 040518