Skip To Content
  • Home
  • Things Are About To Change In The Housing Market

Things Are About To Change In The Housing Market

Good Monday Morning!

If you have been looking for a home to purchase and have become frustrated with our competitive housing market, things are about to change for you.  Yes, home prices remain high and mortgage interest rates have jumped. All of this has made buying a home difficult.  One of the largest issues has been competition and the competition level is going to change.  Soon, there will be fewer people in the housing market, which will end the bidding wars and multiple offers.  True, the home you are buying will have a higher interest rate, but for many who paid well above purchase price, the true cost of the home may be less.  The market is changing quickly, so if you have been frustrated in the past, jump back into the market.  You may be very glad that you did.  The following is an article from "" that talks about our current national market.

The interest rate on the country’s benchmark mortgage product edged downward for the first time since early March, but that doesn’t mean the housing market will see a reprieve.

The 30-year fixed-rate mortgage averaged 5.1% for the week ending April 28, according to data released by Freddie Mac on Thursday. That’s down one basis point from the previous week—one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

Last week was the first time that mortgage rates had surpassed 5% since 2011. A year, the average rate on the 30-year home loan was below 3%.

The 15-year fixed-rate mortgage, meanwhile, rose two basis points to an average of 4.4% over the past week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.78%, rising three basis points from the previous week.

The moderation in mortgage rates is a reflection of movements in the market for long-term bonds. Notably, the yield on the 10-year Treasury rose above 2.9% earlier in the week before settling lower, which indicated how concerns about the COVID situation in China were weighing on investors.

“Markets are increasingly weighing that with Beijing potentially following in Shanghai’s mass quarantine footsteps, the outlook for economic growth is darkening, which may affect the U.S. economy,” said George Ratiu, manager of economic research at

Despite this brief setback, mortgage rates have risen at the fastest pace in over 40 years, Freddie Mac chief economist Sam Khater said in the report. And that trend is likely to continue, given that inflation remains hot.

That will prompt the Federal Reserve to hike rates and adjust its holdings of mortgage-backed securities in the coming months, which will put pressure on mortgage rates. It’s tough to understate how disruptive the historic rise in mortgage rates over the past few months has been.

“Buyers were already constrained by low inventories, which have been driving prices higher,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research note. “Sustained increases in mortgage rates will be an additional headwind for home sales going forward.”

The most recent data for both pending home sales and mortgage applications released Wednesday painted a picture of weakening demand from home buyers. The combination of high prices and high interest rates has made purchasing a home significantly less affordable, and it’s likely that some families have been pushed out of the home-buying market—at least for the time being.

“Buyers of a median-price home are looking at a monthly mortgage payment that is almost 50% higher than it was a year ago, adding an extra $580 to their monthly expenses,” Ratiu said. “It is not surprising that many are stepping back from the market, hoping that conditions will improve.”

For those Americans who persist, they will be reward by a less competitive market, which could give them more homes to choose from and a lower likelihood of facing a bidding war.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!


531 T Street, Springfield, OR 

Price: $375,000    Beds: 3    Baths: 1.5    Sq Ft: 1090

This cute ranch style home has been nicely updated & is located in a convenient neighborhood close to the bus lines & shopping. Small RV parking, large 2-car garage, primary bedroom w/ large attached 1/2 bathroom, forced air heating, laminate floor...View this property >> 


Comments are closed.