Real Estate Rundown March 2023
March 01, 2023
Homebuyers, sellers, and real estate agents across the country are reporting a sense of fatigue regarding the outlook of the real estate market. They report that it feels like there is no longer a buyer’s or seller's market, but a “nobody market”. Homebuyer Burnout is real.
The Fannie Mae Home Purchasing Sentiment Index (HPSI), shows data that reflects the homebuyer burnout sentiment. The HPSI is an index that reflects consumers' current and forward-looking expectations of the housing market and their decisions related to home purchases. According to the most recent index, only 17% of consumers believe it is a good time to buy, reflecting homebuyers' burnout and hesitation.
Mortgage Rates Tick Up Again
While mortgage rates ticked down earlier in the year, they are on the rise again, approaching nearly 7%. According to Freddie Mac’s latest primary mortgage marketing survey, the 30-year fixed-rate mortgage averaged 6.50% as of February 23, 2023, compared to 6.32% the previous week. Sam Khater, Freddie Mac’s chief economist notes that "The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market, and the threat of sticky inflation".
Here are the current mortgage rates as of February 23, 2023:
- 30-year fixed: 6.96% (up from 6.73% a week ago).
- 20-year fixed: 6.93% (up from 6.77% a week ago).
- 15-year fixed: 6.21% (up from 6.02% a week ago).
- 10-year fixed: 6.31% (up from 5.97% a week ago).
There’s Still Hope for the Home-buying Process
While some may be feeling homebuyer burnout, and mortgage rates increase again, there are still reasons to believe in the home-buying process. According to Bess Freedman, CEO at Brown Harris Stevens, there are a few important trends to keep an eye on in 2023. For example, there is still a lot of movement to lower tax states like Florida and Texas. Many people are being called back into the office for work, which affects the housing market as well. New home sales are rising rapidly, and home buyers are gravitating toward this option. Lastly, foreign buyers are coming back to the united states and looking to buy again. Despite the challenging state of the market, people still believe in the homebuying process.
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