Mortgage rates continued their upward trek this week. According to Freddie Mac, the average rate on a 30-year fixed mortgage rose to 6.73% from 6.65% the previous week. However, rates may rise even further in subsequent weeks, depending on how strong other economic data is; jobs and inflation reports, coming soon, are two of the main drivers of today’s mortgage market.
While the spring buying season has already kicked off, buyers may wonder whether this is a good time to purchase a home. There is certainly not a one-size-fits-all answer, but let’s take a look at a few facts. Rates are significantly higher than the previous year, but they are still considered historically low. Sellers continue to be willing to negotiate as there is still less competition in the market, with a couple of offers instead of 4 offers per home sale a year ago. Inventory remains tight, but there are typically about 60% more new listings during March and August than the rest of the year.