On Tuesday, Monday released the average mortgage rates in the country:
On Monday, May 23, 2022, the average interest rate on a 30-year fixed-rate mortgage dropped four basis points to 5.162% APR. The average rate on a 15-year fixed-rate mortgage rose two basis points to 4.365% APR, and the average rate on a 5-year adjustable-rate mortgage fell one basis point to 3.883% APR, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 16 basis points lower than one week ago and 216 basis points higher than one year ago. A basis point is one one-hundredth of one percent. Rates are expressed as an annual percentage rate, or APR.
On top of these numbers, we also see a 12% decrease in home purchase applications. According to the same article, the National Association of Realtors also announced:
…existing home sales — as opposed to new construction — fell for the third straight month in April. Fewer homes sold, but the inventory of homes for sale showed a slight increase.
At the current trend and without adding more homes, it would take a little over 2 months for all current homes to sell. With the number of purchasers decreasing we should see the market become a buyer’s market soon enough.
Housing inventory is measured in months’ supply, which feels a bit like a word problem in math class: If no more homes were put on the market, and homes continued to sell at the current pace, how long would it take for all of the homes to be sold?
If you have any questions about strategizing whether to buy now or later, please feel free to reach out to our team of Real Estate Advisors. We can help you make the wisest decision for you!
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Link to full Nerdwallet article: https://www.nerdwallet.com/article/mortgages/mortgage-interest-rates-forecast