After declining for 5 consecutive weeks, mortgage rates rose this week as there is some calming in the banking sector. According to Freddie Mac, the average rate on a 30-year fixed mortgage rose to 6.39% from 6.27% the previous week.
However, mortgage rates are expected to continue to fluctuate in the coming months, affecting both housing affordability and sales activity. And although the seasonally adjusted annual figure of home sales reported in the news dropped by 2% in March, about 34% more homes were sold in March compared to February based on the raw count of home sales. This increase is actually larger than the pre-pandemic historical average growth of 33% that typically occurs between March and February. While we have a long way to go to get back to pre-pandemic levels of home sales, the housing market is making progress.