Mortgage Rates Continue Ticking Up As Spring Home Buying Season Heats Up

Dated: April 18 2019

Views: 331


After hitting a low point last month, mortgage interest rates are continuing to tick back up along with activity in the home-buying market for spring.

Rates rose to an average 4.17% on a 30-year fixed-rate mortgage for the week ending April 18, according to Freddie Mac. That's continuing an upward trend after hitting their lowest point this year, 4.06%, in March. The average last week was 4.12%. But cash-strapped buyers should take solace in that rates are still well below their 4.47% average of this time a year ago.

While these may seem like incremental gains, even a tiny increase can add up when it comes to a buyer's bottom line. The fact that rates are still 30 basis points below last year can save buyers about $40 a month on their mortgage payments for a $300,000 home that they put 20% down on. (A basis point is 0.01%.)

"The jump in buyer purchasing power from lower rates and wage gains pushed [the number of] purchase mortgage applications to a nine-year high this week," says® Chief Economist Danielle Hale.

"More homes available for sale this year is another plus for buyers, who are grappling otherwise with rising home prices."

However, buyers must also contend with record-high home prices in many real estate markets across the country. The national median home list price reached $300,000 in March, according to®. And it's likely to keep going up as more buyers flood the market in the warm-weather months, says Hale.

"This week's [latest increase] may add a sense of urgency for home buyers hoping to take advantage of lower rates while they last," she says.


Blog author image

Mark Ross

For Mark Ross, founder of Ross NW Real Estate and professional real estate broker, real estate has always been the career of choice. During his 30 years in the industry, Mark has gained experience in ....

Latest Blog Posts

Why Fall Is A Great Time To Plant In Oregon Gardens

Come spring, excited gardeners drive to nurseries, load up their cars and go home to plant. That’s tradition. But fall planting also ranks high as a time to put plants in the ground.Nurseries may

Read More

Fannie Mae Cuts Origination Forecast For 2022

Limited inventory, supply chain disruptions and concerns about inflation have led economists at Fannie Mae to lower their mortgage origination forecasts for the remainder of this year and into 2022

Read More

How Long Does A Home Seller Have To Respond To An Offer

When you make an offer on a house, you might be wondering: How long does it take a home seller to respond to your offer?There’s nothing worse than sitting around waiting—especially when you’re

Read More

Forbearance Numbers Fall As Borrower Exits Remain High

Servicers’ forbearance portfolio volume fell once again last week, as exits remained elevated compared to requests or re-entries. The total number of loans in forbearance dropped by eight basis

Read More