With a monthly mortgage payment increase of 3.7% and a 2.8% rise in the median price of single-family homes, qualifying for a home loan was more challenging for potential buyers in May 2023.
The 30-year fixed rate increased further this week to 6.96% from 6.81% last week, hitting the highest level in 8 months.
Mortgage rates fell for the second straight week, with the average rate on a 30-year fixed mortgage ticked down to 6.69% from 6.71% the previous week.
There is no need to consider raising interest rates; in fact, the Fed should look at cutting interest rates before the end of the year.
Inflation calmed down in May 2023, and further deceleration looks likely in the upcoming months. Low inflation means that the Federal Reserve should stop raising interest rates and possibly slash rates towards the year-end or early next year.
This assessment of local markets examines global market real estate opportunities in Alabama, Florida, Georgia, Mississippi, Puerto Rico, and Virgin Islands.
Presented by Dr. Robert Dietz, Chief Economist for the National Association of Home Builders, at the Residential Economic Issues & Trends Forum during the May 2023 REALTORS® Legislative Meetings in Washington, DC.
With inflation falling below 5%, mortgage rates moved lower this week, with the average rate on a 30-year fixed mortgage dropping to 6.35% from 6.39% the previous week.
Mortgage rates’s drop to 6.27% from last week’s 6.28% have created opportunities for many buyers by lowering the monthly payment for a home loan.
The 5% consumer price inflation in March is a steady improvement from 9% last summer, 8% in autumn, 7% during Christmas, and 6% in the early months of 2023.
