Mortgage rates continued to rise this week, with the average rate on a 30-year fixed mortgage jumping to 6.79% from 6.39% in the first week of May 2023.
Following the trend of the bond market, mortgage rates rose above 6.5% this week, with the average rate on a 30-year fixed mortgage rising to 6.57% from 6.39% the previous week.
The pending home sales pace in April 2023 showed no movement from the previous month but fell 20.3% from a year ago.
Why are homeowners moving, how did they search for their new homes, and how did they ultimately purchase their homes?
With a 6.4% rate, the typical buyer can afford to purchase a home up to $380,000 – $9,000 or 2% less than the median-priced home if they put 20% down.
With inflation falling below 5%, mortgage rates moved lower this week, with the average rate on a 30-year fixed mortgage dropping to 6.35% from 6.39% the previous week.
A record number of Americans are working, with another 253,000 net new job additions in April.
The Federal Reserve raised short-term interest rates again, but this doesn't mean that mortgage rates will rise as well.
The latest interest rate hike by the Federal Reserve is unnecessary and harmful. Consumer price inflation has been decelerating and will continue this trend. In addition, there is significant additional monetary policy tightening already occurring.
NAR released a summary of pending home sales data showing that March's pending home sales pace fell 5.2% last month and 23.2% from a year ago.
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