Mortgage rates continue to remain below 3% as the economy continues to recover.
According to Freddie Mac, the average 30-year fixed-rate mortgage is at 2.96%. These rates follow more closely what borrowers saw in February. Sam Khater, Freddie Mac’s chief economist, pointed to a golden opportunity for homebuyers given the recent economic resurgence.
“Consumer income and spending are picking up, which is leading to an acceleration in economic growth,” Khater said. “The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.”
Even with this good news, borrowers are still having a hard time finding homes to spend their money on. Mortgage application numbers are down even with the low rates due to a lack of inventory. The positive: housing starts jumped nearly 20% month over month to the highest level since 2006, per the latest report from Redfin.
Although housing starts are rising, lumber prices have skyrocketed in the past 12 months, causing the average price of a new single-family home to increase by $35,872, according to the National Association of Home Builders. With the improving economy and more people back at work, things should start turning around.
If you have any questions, concerns or need a pre-approval, reach out to us today to discuss your options.