Welcome to Extreme Investor Network, where we provide expert insights and unique information on personal finance to help you make informed decisions. Today, we will discuss the impact of mortgage rates on the housing market and how it affects buyers and sellers.
“The biggest thing when we’re looking at mortgage rates right now is volatility,” said Nicole Bachaud, a senior economist at Zillow Group. The unpredictable movement of rates can make it challenging for buyers to secure a mortgage at an affordable rate. For example, a homebuyer hoping to secure a $400,000, 30-year fixed-rate mortgage might have seen rates go from 6.82% to 7.10% within just two weeks, adding $75 to their monthly mortgage payment.
Even a 1 percentage point difference in interest rates can mean nearly $200 more on a monthly mortgage payment, according to Jacob Channel, a senior economist at LendingTree. This volatility in rates is “going to keep buyers and sellers on their toes for longer than expected,” Bachaud explained.
Despite the uncertainty, the spring housing market is starting to get back to normal. Buyers are starting to get used to the higher rates and are finding ways to make it work. More sales are expected to happen at the end of May and early June, which is typically when sellers tend to get the best prices. In 2023, homes listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical U.S. home, according to a Zillow analysis.
“I’d say we’d probably also see a later spring season this year,” Bachaud said. With our insights and analysis, you can stay ahead of the curve and make informed decisions in the ever-changing world of personal finance. Stay tuned to Extreme Investor Network for more exclusive content and expert advice on navigating the financial market.
