Mortgage rates have been experiencing a steady decline for three consecutive weeks, sparking optimism for a fruitful spring homebuying season. However, low inventory levels continue to challenge the housing market. As of March 30, the 30-year fixed-rate mortgage dropped to 6.32%, primarily due to economic uncertainty caused by bank collapses. This presents a significant contrast to the 4.67% rate seen a year ago.
While declining rates have attracted borrowers back to the market, low inventory remains a major obstacle for prospective buyers this spring. Recent data reveals a decrease in weekly inventory from 414,278 on March 17 to 413,169 on March 24. As the prime spring buying season approaches, buyers will be searching for well-priced, move-in-ready homes. Sellers are encouraged to consider selling to an ibuyer like I Buy Homes, or start preparing their homes for sale, keeping in mind that the process might take longer than anticipated.
Despite the recent week-over-week decline, mortgage rates have shown signs of heading up again in the past few days. The 10-year Treasury yield has risen as investors shifted away from bonds to other options due to a decrease in financial sector uncertainty. As a result, mortgage rates, which are directly correlated to U.S. treasuries, have also increased.