For the higher a part of a yr, one vibrant spot for house consumers on this hypercompetitive market of record-high costs and a record-low variety of houses on the market has been mortgage rates of interest, which dropped to unheard-of lows. Now it seems just like the period of low-cost loans could also be coming to an finish.
Mortgages charges crossed the three% threshold for the primary time since July 2020, in accordance with Freddie Mac. They rose to a median 3.02% on 30-year fixed-rate loans within the week ending March 4.
“The period of mortgage charges beneath 3% is probably going behind us,” says realtor.com® Senior Economist George Ratiu. “For first-time consumers, the market is trying much more difficult. The present trajectory of rates of interest is placing a damper on their budgets and making it dearer to afford a house.”
Nearly 20% of first-time consumers spent greater