Every side of the real estate market and industry have their eyes on market trends, and specifically with mortgages. As rates have dropped to yet even lower than lowest historic rates, they will take time to trend upwards with the limited housing supply. With summer just around the corner, the overall trends are a continuation of a very competitive housing market in the majority of areas.
Limited Housing Supply
As mortgage rates remain low, housing supply remains low and selling price are trending upward. It has been reported the housing market is short by 3 million homes in overall listings. With this in mind, the limited housing supply will continue and the listing prices and selling prices are likely to trend upward. This leaves buyers in a tough position, with sellers on top of the world.
Spring Mortgage Rates
The low mortgage rates in March did something most did not expect, the fell further. Unlike any other time in the recent past, mortgages are remaining affordable for home buyers at, or below, 3 percent. The average 30-year mortgage rate in March was at 3.044 percent, while on June 4th was a bit lower at 2.901 percent, while the highest rate was 3.277 percent on March 19th and the lowest rate at 2.792 percent on May 10th. The trend throughout June is expected to be a slow increase.
Moving Into 2021’s Second Half
Experts in the industry expect mortgage rates to stabilize or slowly climb over the remainder of the year. The market will remain competitive for buyers. Those who continue to save more for their down payment and closing costs will be in a better position to close a deal. For sellers, it’s a good time to sell. Just be sure you know where you will live once closing comes around.
At Total Lending Concepts, we can help you navigate the consistently changing industry. Reach out today and let us help you on your journey.