Mortgage Rate Volatility Delaying Home Sales During Upcoming Months

People looking to buy or sell homes during the upcoming months are closely monitoring mortgage rates as they continue to rise. According to data from Freddie Mac via the Federal Reserve, the average 30-year fixed-rate mortgage rose to 7.17% for the week ending April 25th. It remains unclear when the Federal Reserve will make its first rate cut; however, experts predict that it may not happen until July. This could lead to fluctuations in mortgage rates between 6.5 and 7.5%. The volatility of these rates is causing uncertainty for both buyers and sellers as a buyer’s ability to afford a property can change from day-to-day due to the fluctuating interest rates. Nicole Bachaud, senior economist at Zillow Group, explained that this movement in mortgage rates will keep buyers and sellers on their toes longer than expected because they never know what rate they might face when considering purchasing or selling a home. This uncertainty could potentially delay sales until later in May and early June as these are the times of year when homes tend to fetch higher prices due to increased demand from potential buyers, according to Bachaud’s earlier analysis at Zillow.