Mortgage rates took a breather from their recent rally as investors are concerned about the economy. Following the 10-year Treasury yield trend, the 30-year fixed mortgage rate fell to 5.25% from 5.30% the previous week.
Meanwhile, housing inventory is showing promising signs. During the spring and summer seasons, the inventory of homes for sale typically increases. This is one of the seasonality trends that are observed in the real estate market. Specifically, inventory normally increases by 9% on average in April compared to February. However, this year, inventory rose even further by 21% in April. According to NAR, the number of homes for sale rose to above one million units. While May and July are generally the two busiest listing months, more homes are expected to be available in the market in upcoming months. Thus, these additional homes may help potential buyers to find a home while mortgage rates are still historically low.