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Rising mortgage rates make it difficult for potential buyers to act

Mar. 02, 2023 12:14 PM ETREM, KBH, TOL, PHM, NVR, DHI, LEN, XHB, REZ, TPH, HOMZBy: Mary Christine Joy, SA News Editor19 Comments


David Gyung

Mortgage rates are above their 52-week average this week, with the rising rates making it difficult for potential buyers to act, according to the Freddie Mac Primary Mortgage Survey.

30-year fixed-rate mortgage averaged 6.65% for the week ending Mar. 2, up from

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Comments (19)

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Air hasn't even been sucked out of the market yet. You have investor ownership 4x the historic norm. Eventually they'll want to sell, the biggest buyers in the world have already stopped buying long ago. What we'll be faced with is massive inventory and low demand; the worst combo, which makes it similar to the GFC in that nature, but the phenomenon is slightly different (although actually the same).

The myth that there has been low supply, is just a myth. There is a massive supply of homes out there. They may not be for sale, yet, but they're there.
warshack profile picture
@DrewMcVay why would anyone sell when people are literally begging to pay higher rents? The consumer is still strong and getting good wage growth. Also people who can't even afford rent will not be buying, so they will continue to rent.
@warshack the phenomenon of people going back to not living solo or single, and bunking up or sharing living space with others. COVID phenomenon that is essentially never seen, where people like never before went out to get a place on their own, because of COVID, and it was affordable. COVID isn’t what it was, not even similar, and things are no longer affordable — which will be a reversion to the way things were housing wise. There will be a lot of inventory available
jack kreg profile picture
Reagan-onomics, YES, falling interest rates, GDP growth, growing employment, highly productive workforce, stable dollar, Social Security fixed for 40 years! deficit spending to win the nuclear cold war of past 30 years, 1950-1984!

Biden-onomics, NO, rising interest rates, soaring inflation, gov deficits $20 Trillion incoming decade, workforce productivity dropping, GDP back to 1 or 2% for coming decade, Social Security will go BK inside of ONE decade, raising taxes and reducing benefits is only solution to BK under Biden.
Karl Glazier profile picture
@jack kreg The deficit exploded under Reagan. Huge waste of money building up the military when the Soviet Union was about to collapse.
jack kreg profile picture
@Karl Glazier winning the cold war cost you money, Reagan spent what it took to break the Evil empire, open eastern Europe to the world, think Poland, where would they be today without Reagan's bold leadership.

Your Monday morning QB about how Soviet's would collapse under their own incompetence, is just that, easy to say after the Reagan Victory, as if you could have done the same on the cheap!!

Good luck with that in real life bub, try leading before the victory, its takes real courage, as Reagan showed with the American Cold War Victory.
I like the feel of nuclear peace, that we did not have for 40 years prior to Reagan, cheers
Interesting problem who gives up the ultimate 30 year gift of a 2-3% mortgage, and trade to one at 7%. Heck, you won't even prepay it. Invest in Treasuries or CD's and earn money on theirs. Biggest Fed f'up in decades keeping rates so low, and inflating real estate so high.
warshack profile picture
@rambler1 has the fed even started unloading mortgage backed securities? They are probably still buying lmao
Current 30-year fixed mortgage rate is 7.10% as of 12:50pm ET. It's been on a strong upward trend since February 3, 2023 when it was 5.99%.

OverTheHorizon profile picture
“Lower mortgage rates back in January brought buyers back into the market. Now that rates are moving up, affordability is hindered and making it difficult for potential buyers to act, particularly for repeat buyers with existing mortgages at less than half of current rates," Khater added.
Still dont see much slow down in southern California. Cash buyer keeping market hot
@Dinesh S www.ocregister.com/...

"southern california home sales fall to all time low"

"home sales down 43% y/y"

"home prices drop for the first time year/year......"
warshack profile picture
@DrewMcVay sales may fall but prices are still going up.
@warshack must’ve missed the part about prices dropping y/y
StockdocJB profile picture
No way.
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