Mitch Roschelle, general manager of Madison Ventures Plus, says real estate agents have turned baristas due to pressure on the housing stock.
Average US long-term mortgage rates rose this week to the highest level since mid-March, according to weekly data compiled by mortgage buyer Freddie Mac.
The interest on the 30-year fixed mortgage rose this week from 6.39% a week ago to 6.57%. A year ago that was an average of 5.10%.
“The US economy is showing continued resilience which, combined with debt ceiling concerns, has led to higher mortgage rates this week,” said Freddie Mac chief economist Sam Khater.
A “For Sale” sign outside a home in Atlanta, Georgia, U.S., on Friday, February 17, 2023. (Dustin Chambers/Bloomberg via Getty Images)
Open house at a home for sale in Evesham Twp., NJ, Feb. 26, 2023. (Fox News)
On March 22, 2023, a for sale sign is posted in front of a home in San Anselmo, California. (Justin Sullivan/Getty Images)
“Dumped affordability remains a problem for interested homebuyers and homeowners seem unwilling to lose their low rate and put their home on the market. If this predicament continues to limit supply, it could present an opportunity for builders to address the housing shortage in the country.” Khater continued.
DEMOCRAT-DRIVEN CITIES THE COUNTRY’S LEAST AFFORDABLE FOR HOUSE BUYERS: STUDY
Meanwhile, the average interest rate on a 15-year fixed-term mortgage rose to 5.97% this week from 5.75% a week ago. Around this time last year, mortgage interest relief with a term of 15 years averaged 4.31%.
The average interest rate on a 30-year home loan has risen for two weeks in a row, following movements in 10-year Treasury yields, which lenders use as a guide to pricing loans.
Yields on 10-year Treasuries have been mostly up recently, rising as high as 3.79% during midday trading on Thursday. Two weeks ago it was still 3.39%.
HIGH PRICES, LOW INVENTORY KEEP BUYERS ON THE SIDELIST
The rise in bond yields comes as investors react to stronger-than-expected economic data and the implications this could have for whether the Federal Reserve will raise rates again next month.
Bond traders are also considering the possibility of the US government defaulting on its debts as White House and GOP leaders argue over a deal to raise the federal government’s debt ceiling so they face an unprecedented June 1 bankruptcy. can occur.
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The Associated Press contributed to this story.