As we hopefully start to climb out of the covid crisis, interest rates nudged up this week. Rates inched up as Freddie Mac reported that the average 30-year-fixed-rate mortgage was 2.97%. This is still well below the rate a year ago which was 3.45%. Analyists expect rates to continue to rise slightly throughout the year on an anticipated economic recovery, although rates are expected to remain very low by historic standards.
While rates remain near historic lows, the housing market continues to be red hot. Extremely low inventory is driving prices up. The National Association of Realtors reported existing home sales were up nearly 25% compared to last year and the median home price is up nearly 15% from a year ago. This may be a bigger impediment to home buyers than rates inching up.
We will continue to keep you up to date on market trends and use our web site pre-qualifier to see what you can afford and get a pre-qualification to assist your home shopping.
