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Mortgage Rates Dip for Second Week as Inventory Falls to All Time Low

April 3rd, 2017 · No Comments · California Real Estate, Home For Sale, Mortgage Information, Santa Barbara Homes For Sale

Mortgage Rates Dipped for the Second Straight Week:  Though higher rates and fluctuations don’t appear to be stifling home sales yet.   According to Freddie Mac, 30-year, fixed-rate mortgages averaged 4.14 percent for the week ended March 30, down from 4.23 percent the previous week. Fifteen-year, fixed-rate mortgages averaged 3.39 percent, decreasing from 3.44 percent on a weekly basis.

In a statement accompanying the report, Freddie Mac Chief Economist Sean Becketti said that new home sales grew by 6.1 percent in February to an annualized 592,000, much higher than expected. But as interest rates gradually rise later this year, Becketti expects them to put a cap on home sales activity, as he explained in Freddie Mac’s March Outlook.

US Inventory Falls to All Time Low:  It’s a national dilemma, with the fewest number of properties on the market in nearly two decades. CNBC reports that home-supply conditions have reached their lowest level since the National Association of Realtors began tracking that data 18 years ago. New home construction is running at about 75 percent of its normal levels, and builders are bringing few starter homes to market, as high land, labor, and materials costs minimize their profit margins.

Investors purchased about 4 million distressed properties during the housing crash, and the fact that they’re not returning them to the market is exacerbating the nation’s inventory woes. Price appreciation may also be a contributing factor, as more buyers decide to stay put and pump their home equity into renovations.

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