Rich young folks lost confidence in the stock market?

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‘A nobody’s market’: Lower mortgage rates fail to coax sellers out of hibernation, forcing buyers to ‘narrow their list of must-haves’ in a home

While a heat wave broke records across much of the U.S. this week, the housing market is still a lot colder than it was last April.

Some experts do hold hope for increased activity in the coming months, especially as mortgage rates dip for the fifth week in a row.

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“Incoming data suggest inflation remains well above the desired level but showing signs of deceleration,” says Sam Khater, Freddie Mac’s chief economist.

And according to recent data, the jobs market is staying strong — with 236,000 jobs added and the unemployment rate sliding down to 3.5% in March.

“These trends, coupled with tight labor markets, are creating increased optimism among prospective homebuyers as the housing market hits its peak in the spring and summer,” says Khater.

30-year fixed-rate mortgages
The average rate on a 30-year home loan declined slightly from 6.28% to 6.27% this week. A year ago at this time, the average was 5%.

“With inflation moving closer to the Fed's 2% target, mortgage rates are expected to decrease further in the coming months, likely below 6% by year's end,” predicts Lawrence Yun, chief economist at the National Association of Realtors.

Lower rates will bring down monthly payments, opening doors to more potential buyers.

“If rates drop to 6%, 3.1 million more households will once again be able to afford to buy the median-priced home compared to the beginning of the year.”

15-year fixed-rate mortgages
The average rate on a 15-year home loan dropped from 5.64% to 5.54% this week. This time a year ago, the 15-year fixed rate averaged 2.77%.

“With both homebuyers and potential sellers feeling rather dour about the real estate market … the number of homes sold will continue to be lower than one year ago for the next few months,” writes Danielle Hale, chief economist at Realtor.com.