Mortgage Rates drop after debt ceiling news
The national average for a 30-year, fixed rate mortgage declined -0.19% to 6.95%* on Tuesday May 30th, 2023. This marks the first time in over two weeks that the national averaged posted a double-digit decline, and comes on the heels of an agreement on the debt ceiling for U.S. government spending.
The bill, seen as a compromise between the White House and the Speaker of the House, still has several hurdles to clear including passing both houses of Congress before it becomes law. If Tuesday’s reaction is any indication, the national average for a 30-year, fixed rate mortgage may continue to slide toward 6.00%.
Home prices in Dallas-Ft. Worth decline for the first time in 10 years
According to a recent report done on the Dallas-Ft. Worth metro area, home prices declined 1.5% from March 2022 to March 2023. This decline is the first time since 2012 that the region’s home prices have shown a year-over-year decline since 2012.
Home prices in Ft. Worth are down 7.5% since their peak in June 2022, but did show a slight increase from February 2023 to March 2023.
The median price for a single-family home in Dallas declined 5% year-over-year in April.
When asked about the state of the housing market in Texas, Adam Perdue, an economist with the Texas Real Estate Research Center at Texas A&M University, said, “The Texas market is returning to more normalcy compared to the rapid run-up seen from 2020 to 2022. Prices have risen 35% to 40% since the start of 2020, while the center at that time expected prices would have risen 10% or 15% in the same period.”
What are the experts now saying about the summer housing market?
In a recent interview with the San Francisco Gate, podcast host and author of ‘Real Estate by the Numbers’, Dave Meyers, offered his predictions for the summer housing market.
When asked about mortgage rates, Meyers claimed that mortgage rates may continue to be fairly volatile but should stay within the 6.25% to 7.00% range during the summer months.
Meyers was also asked about housing market volume. He does expect sales volumes to fluctuate, but said, “Home sales volume will likely see a seasonal bounce in the coming months but remain well below 2022 levels.”
He was also asked about where he saw home prices headed. To this, Meyers replied, “The direction of prices will vary significantly by city. I expect some cities in the Northeast, Midwest, and South could see year-over-year growth, while many cities in the West will see further declines.”
He was also asked if he viewed current market conditions as a buyer’s or seller’s market. Meyers said, “Broadly speaking, the Northeast, Midwest, and Southwest will likely be in a seller’s market, albeit much more balanced than recent years,” says Meyers. “Meanwhile, the West will likely be a bit cooler, with most Western cities in a buyer’s market or in a flat, more balanced market.”
* National average rates accurate as of 5/30/23 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
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