By Mortgage rates continued to decline for the fourth consecutive week, with the average 30-year fixed rate falling to 6.83%. Rates on long-term fixed-rate mortgages, including FHA loans, VA loans and jumbo loans, all dropped during the past week. Meanwhile, short-term mortgage rates and adjustable mortgage rates stayed about the same.
Here are the current mortgage rates, without discount points unless otherwise noted, as of April 6:
- 30-year fixed: 6.83% (down from 6.92% a week ago).
- 20-year fixed: 6.71% (equivalent to 6.71% a week ago).
- 15-year fixed: 6.1% (down from 6.12% a week ago).
- 10-year fixed: 6.26% (down from 6.29% a week ago).
- 5/1 ARM: 5.66% (equivalent to 5.66% a week ago).
- 7/1 ARM: 5.85% (up from 5.77% a week ago).
- 10/1 ARM: 6.09% (down from 6.11% a week ago).
- 30-year jumbo loans: 6.89% (down from 6.99% a week ago).
- 30-year FHA loans: 5.81% with 0.06 point (down from 5.84% a week ago).
- VA purchase loans: 5.96% with 0.05 point (down from 6.02% a week ago)
- The average rate on a 30-year fixed mortgage has steadily declined over the past month, giving prospective homebuyers more incentive to enter the market. Today’s homebuyers are particularly sensitive to rate fluctuations – a drop in mortgage rates in February caused home sales to rebound.
- To that point, the housing inventory is still tight. Many sellers remain on the sidelines as they hold onto a mortgage with a much lower rate than what’s currently available. If this month’s mortgage rate relief causes another bump in demand, buyers may find a more competitive market than previously expected. And if mortgage rates continue to drop further in 2023, as forecast, the inventory crisis could last well beyond the spring homebuying season.
- Indicator of the Week: The Best Week of the Year to Sell a Home
- The best week to list a home for sale in 2023 is April 16-22, according to Realtor.com. During this time of the year, home sellers benefit from above-average buyer demand, listing prices and sales activity.
- Spring homebuyers tend to start shopping for homes before sellers hit their seasonal stride, meaning that demand (and competition) is higher earlier in the spring. Between 2018 and 2022, home listings saw 16.4% more views during the second week in April than the typical week throughout the year. Additionally, the average number of days a home stays on the market is about 11 days shorter for homes listed during this week – that’s about 18% faster than the average week.
- Historically, home listing prices are 2.1% higher during the week of April 16-22. If this trend continues in 2023, the median home listing price in this period could be $8,400 above the typical week this year.
- But this spring homebuying season could defy seasonal trends. During the past few years, spring home sales activity went into overdrive as buyers scrambled to lock in a record-low sub-3% mortgage rate – something that is certainly not the case given current mortgage rates.
- Although mortgage rates remain about twice as high as they were just a little over a year ago, there are signs of improvement in recent weeks. Especially given the affordability impact of volatile mortgage rates, competition will remain tight for lower-priced homes, where inventory continues to lag.
- “As those buyers who are still in the market look for well-priced new listings, sellers can ensure attention by getting to know their local market and listing a well-maintained home for an attractive price,” Jones says.
- Overall, home prices are expected to continue to soften somewhat as a result of more balanced market conditions, although the actual figures will vary from one regional market to the other. Still, home prices remain elevated due to the rapid rate of appreciation seen in the past few years – those sticky home values aren’t likely to retreat to pre-pandemic home values.
- Even if buyers can’t erase the past two years of home price gains, they do have more bargaining power than they had in 2021 and 2022. This spring’s homebuyers may not have to skip home inspections, waive appraisal contingencies or bid well over the asking price in order to close the deal. On the other hand, sellers may need to be willing to make some concessions to entice buyers. And that’s not a bad thing, just a return to (relative) normalcy.
