By Arlenys Tabare
According to the Freddie Mac report published this Thursday, Mortgage rates with reference to 30 years increased from 6.30% to 6.37% by the end of the first week of May, which suggests that the real estate market continues to show certain volatility and instability that could drive away future buyers in the coming weeks.
In this regard, Lisa Sturtevant, chief economist at Luminous MLS, believes that “the expectation that interest rates will be below 6% this spring has disappeared, and It is possible that buyers and sellers will face rates around 6.50% during the summer”he told ABC News.
For their part, 15-year fixed mortgage rates also increased from 5.64% to 5.72% in the last week, slowly approaching the 5.89% of a year ago, according to Freddie Mac analysis.
Higher mortgage interest rates are a reaction to the mortgage market 10-year Treasury bonds, which stood at 4.37% this Thursday and that in recent months it has been influenced by the rise in energy prices due to the conflict in the Middle East, which has not only generated the closure in the Strait of Hormuz and geopolitical tension in the people, but has intensified uncertainty regarding the economy and inflationary pressure.
Although this week real estate data from ATTOM revealed that In some states, home prices began to decline after reaching historic levels. In at least 39 of the country’s 129 largest cities, prices fell as much as 9% compared to the previous year.
According to Jake Krimmel, senior economist at Realtor.com, while the trend doesn’t show a full recovery or a return to normal, “it just seems like it’s slowly normalizing,” he said, which is a positive for future buyers.
Keep reading:
- US Pending Home Sales Surprisingly Increased 1.5% in March
- Monthly mortgage payment in the US reaches a new high, according to Realtor data
- U.S. rental payments growing at slower pace, Zillow report finds
- More than 70% of the Latino population in the US affirms that acquiring a home is a goal in their life, according to analysis
