Will Rising Mortgage Rates Undermine a Market Recovery Ahead of the Spring Buying Season?
Dwindling supply and rising borrowing costs are backing prospective buyers into a corner just as the spring market heats up
March 13, 2023
Image: Nuchjaree / stock.adobe.com
Mortgage interest rates climbed to 6.73% for a 30-year fixed-rate mortgage during the week ending March 9, a tough blow for prospective buyers hoping for an improvement in affordability after a series of rate hikes at the close of 2022. The most recent uptick means today’s homebuyers will have to pay almost 50% more per month for their homes than they would have just a year earlier, and stubborn inflation may lead to even more increases over the coming months, Realtor.com reports.
Climbing housing costs threaten to undermine a market recovery at the start of what many housing experts had hoped would be a healthy spring buying season.
“Recent signs of a housing bottom have been encouraging, but the still-shifting financial and economic landscape makes it hard to pinpoint whether the floor is firm enough to withstand these new challenges,” says Realtor.com Chief Economist Danielle Hale in her most recent analysis. “In the meanwhile, that means housing activity is likely to continue roughly in line with its recent low pace of sales.”
