Ari Rastegar on residents fleeing the cities for the Lone Star State.
A recent rise in the mortgage rate may show a reversal after new data from Freddie Mac revealed a second consecutive week of declines.
According to the company’s survey for primary mortgage lending, the average fixed mortgage rate of thirty years dropped by almost ten basis points to 3.04% for the week ending April 15, compared to 3.13% the previous week and 3.31% a year ago.
Meanwhile, the 15-year fixed mortgage rate stood at 2.35%, compared to 2.42% the previous week and 2.80% a year ago, and 5–this year, treasury-indexed hybrid adjustable-rate mortgages were 2.8%, up from 2.92% a week ago and 3.34% a year ago.
US housing market nearly 4 million homes short of copper demand
Freddie Mac, chief economist, Sam Khater, said the economy seems to be improving on the demand side, but that the supply of various goods and materials remains scarce.
“Because of this imbalance, price pressure is building and inflation is rising,” Khater said.
However, the mortgage giant expects a modest increase for the rest of the year, with forecasts of 30-year rates of 3.2% in 2021 and 3.7% in 2022.
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In addition, Freddie Mac’s quarterly forecast estimates that house price growth will be 6.6% in 2021, before declining to 4.4% in 2022. Home sales are expected to reach 7.1 million in 2021 and to 6.7 million homes in 2022.
Meanwhile, the origin of purchases is expected to increase to $ 1.7 billion in 2021 before falling to $ 1.6 billion in 2022, and the original refinancing is expected to be $ 20 trillion in 2021 before reaching $ 20 billion in 2022. 770 billion would go down.
Overall, annual mortgage rates are expected to be $ 3.5 billion in 2021 and $ 2.4 billion in 2022.
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The mortgage giant’s recent analysis of the US housing market According to the Wall Street Journal, a 3.8 million deficit of single families is needed to meet the country’s demand, representing a 52% increase in the country’s housing shortfall compared to 2018.