U.S. mortgage rates declined for a fourth consecutive week, with the average rate on the 30-year fixed mortgage falling to 6.28% from 6.32% the week before, Freddie Mac reported.
Despite this decline, rates don’t seem to have fallen enough the convince homeowners to list their homes for sale, Jeff Tucker, a Zillow senior economist, observed.
“Affordability and availability of homes are the biggest hurdles for buyers in today’s market, though both are driven by mortgage rates,” Tucker commented. “Many homeowners just are not willing to give up their current house and low monthly payments to jump into a tight, expensive market.”
Data from the Mortgage Bankers Association (MBA) showed that the number of mortgage applications for home purchases for the week ending March 31 declined by 4% on a seasonally adjusted basis. Activity remains 35% lower than last year on an unseasonal basis.
According to Altos Research, only 410,000 single-family homes came on the market this week; down almost 1% from the previous week.