Other indices are also showing a fall in rates.
The 30-year fixed rate for conventional loans was 6.90% mortgage news daily Thursday morning, down seven basis points from last week. of housingwire Mortgage Rates Center Shown optimum blue The 30-year fixed rate for conventional loans stood at 6.67% on Wednesday, compared with 6.71% last week.
“Potential homebuyers are watching rates closely and waiting for the edge to come out,” Sam Khater, chief economist at Freddie Mac, said in a statement. “However, inventory challenges remain as the number of existing homes for sale remains small. However, a recent rebound in single-family housing is an encouraging development that is expected to extend through the summer.
Altos Research Data showed just 451,000 single-family homes on the market as of June 16, compared with 950,000 in June 2019.
According to National Home Builders AssociationJune was the sixth straight month of an increase in builders’ confidence. This is the first time since July 2022 that the sentiment level has crossed the midpoint of 50 (out of 100). In June, the score was 55.
“This summer’s housing market shows signs of normalization in the wake of an unprecedented period,” George Ratieu, chief economist Keeping up with current affairssaid in a statement.
“The unique real estate situation of the 2020-22 period – government-mandated quarantine, remote working, massive fiscal and monetary easing – can be better characterized as the “Year of the Unicorn”, which can easily be replicated Can’t go. Any comparison to those years could cast a shadow over the current market. Also, a return to historical trends is a welcome step in the right direction.
The current median home buyer’s monthly mortgage payment is $2,300, up $220 from a year ago, according to Retiou estimates. However, last year many buyers saw mortgage payments increase by $1,000 over the previous year due to higher prices and rising rates.
“The difference in monthly payments is becoming less dramatic as of 2022,” Ratiu said.
monetary policy
Investors are focusing on the second half of the year, as Fed Chairman Jerome Powell expected additional rate hikes in his testimony to Congress on Wednesday.
“Chairman Powell clarified today that the pause at this month’s meeting was at best temporary,” said Marty Green, principal at Law Firm for Residential Mortgage Lenders Polunsky Beetle Greensaid in a statement.
“Inflation concerns remain at the forefront. One advantage in telegraphing a possible increase in rates at future meetings is that it reduces or eliminates expectation of a potential reduction in the fed funds rate for the remainder of 2023, which some market participants continued to fret about.
realtor.com “Mortgage rates will remain elevated during the rest of the year, with further additional rate hikes likely,” said economist Jiayi Xu.
“As a result, affordability will continue to be an important factor in buyers’ home buying decisions,” Xu said in a statement.
