Mortgage rates remain below 3% again

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We’re almost halfway through the year, and all of the forecasts at the end of last year, suggesting that interest rates will rise steadily and never see a low rate of a pandemic ever again, have hardly come true. They stayed below 3% this week for five of the past six weeks for 30-year fixed rate loans, reaching 2.95% on a Freddie Mac Weekly Report… When we closed 2020, rates were at 2.67%, just one basis point above their lowest on record a few weeks earlier.

The number of home purchases has increased slightly over the past few weeks, but buyers are still constrained by the lack of available inventory. Survey of more than 400 US megacities. conducted by Redfin showed that the number of homes sold at list price increased by more than 50% for the first time in the four weeks ending May 16. Among other all-time highs found by the study, 45% of homes received bids accepted within one week of being sold on the market, and the average selling price to list price ratio was 101.7%. The median home sales price also hit an all-time high of $ 352,975.

According to the Association of Mortgage Banks, the number of purchase applications has increased slightly over the past few weeks, although they are lower than a year ago. “Buy orders rose for the second time in three weeks, recovering from a rather weak April with a predominantly weekly drop,” said Joel Kahn, MBA junior vice president of economic and industrial forecasting. “Although purchasing activity was about 4% lower than a year ago, by comparison, there was a big spike in activity last spring, when the restrictions related to the pandemic were lifted.”

This 4% decline is still significant as it shows how strong the current demand is, as it is the smallest decline compared to the time period when deferred demand suddenly hit the market.

As we get closer to the holiday week, we can expect a slight slowdown, but this will only be a short-term spike. The activity in the coming summer season will be a competitive market for buyers, while sellers can look forward to record prices for their homes.

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