HUD Articles

By Margaret Heidenry

Mar 14, 2024

The unpredictable mortgage rate ride continued this week—and landed in a positive place.

The average rate for a 30-year fixed home loan ticked down from 6.88% to 6.74% for the week ending March 14, according to Freddie Mac.

“The 30-year fixed-rate mortgage decreased again this week, with declines totaling almost a quarter of a percent in two weeks’ time,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Despite the recent dip, mortgage rates remain high as the market contends with the pressure of sticky inflation. In this environment, there is a good possibility that rates will stay higher for a longer period of time.”

Homebuyers entering the spring housing market will also be buoyed by another data point: Home price growth sank below 0%—to -0.6%—for the week ending March 9.

“However, the key question is whether this decline is a one-time spark or the beginning of a sustainable trend,” says Realtor.com® economist Jiayi Xu in her analysis.

With less than a week left before spring officially starts, how will the latest housing statistics affect the real estate market as it heats up? We’ll explore what the latest data means for homebuyers and sellers in this installment of “How’s the Housing Market This Week?”

Mortgage rates’ unpredictable trajectory

Earlier in the year, mortgage rates were in the mid-6% range. But now that rates are higher, some home shoppers may opt out of the real estate market until rates fall to a friendlier number—though they may be waiting a long time.

“The uptick in February’s consumer price index suggests that the Federal Reserve is unlikely to implement rate cuts in the near future, indicating that mortgage rates may persist at elevated levels for an extended period,” explains Xu.

Home price growth finally sinks ‘below zero’

When mortgage rates rise, the housing market stagnates: Fewer buyers in turn force sellers to adjust how much they can ask for a property.

“Annual listing price growth has floated lower since early 2024, and it dropped below zero this week,” Xu adds. “It marks the first week of year-over-year price declines since July 2023.”

While the price of a median home was $415,500 in February, Xu says the fall in price growth seen for the week ending March 9 is an “encouraging sign to home shoppers, given the ongoing affordability challenges in the housing market.”

Budget-minded homebuyers should also take note of a welcome uptick in homes that cost between $200,000 and $350,000.

The ongoing surge in inventory

Another bright spot? According to Realtor.com February housing data, 2024 has seen the highest level of homes for sale since 2020. Indeed, listing pages have grown for 18 consecutive weeks compared with the same time last year.

For the week ending March 9, total active inventory grew, with the number of homes for sale rising 21.7% above year-ago levels. Yet the real boon for buyers is the surge of new-to-market listings, up by 15.8% for the same time frame.  

“A jump in new listings means fresh options—crucial for buyers shopping with a specific must-have list,” says Xu. “Nevertheless, the number of homes on the market is still down nearly 40% compared to what was typical in 2017 to 2019.”

Homes are selling quickly

Homebuyers who can meet the current mortgage challenges and take advantage of the new pool of lower-priced homes are not wasting any time making an offer before the spring market heats up.

The typical home spent two fewer days on the market for the week ending March 9 compared with the same week one year prior. (Homes spent an average of 61 days on the market in February.)

“More home options mean more buyers are finding what they are looking for amid scarce inventory, so homes continue to move relatively quickly,” explains Xu.

Source: https://www.realtor.com/news/trends/mortgate-rates-housing-statistics-week-ending-3-14-24/