Mortgage rates reversed a downward trend and rose for the first time in five weeks. Rates increased by 9 basis points, according to data from Freddie Mac. Yahoo Finance's Rebecca Cheng delves into the impact of this change on the housing market.
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This post was written by Angel Smith
Video Transcript
Now, the latest data from the housing market shows that mortgage rates rose for the first time in five weeks.
To learn more, I'm joined by Rebecca Chen from Yahoo Finance.
Hi Rebecca and Shanna, According to Freddie Mac, the average fixed 30-year mortgage rate rose about 9 basis points this week.
This is the first increase in the rate since May and the first increase in more than four weeks.
Well, interest rates have been hovering around 7% for a while now.
And one housing company actually said this has helped bring inventory back onto the market.
The reason is that as mortgage rates become more stable, more homeowners are willing to give up lower mortgage rates to put their homes on the market because homeowners have become pretty accustomed to the high interest rate environment we're currently seeing.
Well, what's happening is as Americans continue to go about their lives.
Maybe you have a new baby or need a new school district.
We are coming to a time when some people are relocating and need to put that inventory on the market.
Currently, from the homebuyer side, we are yet to see a recovery in demand in mortgage activity.
The latest statistics show that mortgage applications remain very low.
But housing experts say as mortgage rates stabilize or fall, more inventory will come onto the market.
And that will help drive up home prices and bring buyers back.
Rebecca.
thank you.
appreciate.
Have a wonderful April!