Mortgage Rates Just Dropped—but the Housing Market Got Even Better News This Week
- realtor.com
- Mar 20, 2024
- 1 min read
Mortgage rates dropped this week after pushing dangerously close to 7%.
The average rate for a 30-year fixed home loan ticked down from 6.94% to 6.88% for the week ending March 7, according to Freddie Mac.
“Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market.”
The mortgage rate outlook
Many homebuyers and sellers have become preoccupied with the U.S. Federal Reserve, which has been adjusting interest rates in its ongoing battle against stubborn inflation. Looking ahead, projections from the Realtor.com 2024 forecast suggest that rates will maintain an average of around 6.8% throughout the year. There is a possibility of a decline to approximately 6.5% by the end of the year.
Housing inventory hits a four-year high
The week ending March 2 experienced a whopping 19.9% more properties actively for sale compared with last year’s levels.
“The February Realtor.com Housing Trends Report showed that 2024 had the most abundant level of inventory since 2020,” says Jones.
Specifically, the number of newly listed homes fresh to market rose annually by 17.4% for the week ending March 2, marking a 19-week streak upward.
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