What is happening with mortgage rates so far in March?
According to Freddie Mac, the fixed-rate for a 30-year loan continued to fall, with a 13-basis point slide to 3.76% in the first week of March.
Investors appear to be concerned with the conflict in Ukraine after the Russian invasion, and rising oil prices are among the economic concerns for many Americans.
Markets have their eyes on mounting inflation and expect the Federal Reserve to proceed with a 25-basis point hike at its upcoming mid-March meeting.
Volatility in economic markets and higher prices at the pump are likely to push bond yields into larger swings, while inflation will keep upward pressure on mortgage rates.
What does this mean for you if you are considering buying or selling a home?
The housing inventory across the country remains at all-time lows, with high demand early in the spring buying season. The typical home sold in just 47 days with listing prices at a new record high in February.
At today’s rate, the buyer of a median-priced home will pay over $278 per month more than this time in 2021 on their mortgage payment. Surging prices and higher rates are creating challenges for first-time buyers looking for a home, causing them to make difficult choices in light of higher monthly costs for food, gasoline, clothing, cars, and health care.