The spring housing market is on, but mortgage rates just shot higher
CNBC • • general
Key Points:
- Spring is typically the busiest season for home sales, but rising mortgage rates and economic uncertainty, exacerbated by the war with Iran and soaring oil prices, are creating challenges for buyers and sellers this year.
- Mortgage rates have risen sharply, with the 30-year fixed rate climbing to 6.53% as of early spring, reducing affordability despite a growing inventory of homes that are staying on the market longer.
- Inventory is increasing mainly because homes are not selling quickly rather than more sellers entering the market, with some potential sellers hesitating due to geopolitical concerns, leading to a mixed market across different cities.
- Home price growth has slowed significantly, with modest increases in some regions like the Northeast and Midwest due to tighter supply, while other major markets
