This week’s economic releases show a spring landscape that is taking longer to bloom. Mortgage applications are down this week, mortgage interest rates are up, pending home sales are up, and GDP grew less than expected, with personal consumption expenditure up. The bottom line for spring home buyers is that mortgage interest rates may show little dramatic downward movement any time soon.
Mortgage interest rates for the week sit at an average of 7.17%, which translates to a mortgage payment of $2,436 for a buyer purchasing a $400,000 home with a 10% down payment. While this monthly payment is out of reach for many consumers, those with housing equity may offset the higher price and interest rate with a larger down payment. Pending homes did move up on a monthly basis in the Northeast, South, and West, which underlines the fact that home buyers move when life changes happen
