US mortgage rates experienced an uptick, intensifying the strain on those looking to purchase homes.
The latest figures show a climb in the average rate for a 30-year fixed mortgage to 6.82%, a slight increase from the previous week's 6.79%, as reported by Freddie Mac. This rise exacerbates the challenges for prospective homebuyers in an already tough market, where high borrowing costs and sustained property prices have diminished affordability. A significant portion of home purchases, over a third in February, were conducted in cash, highlighting the competitive edge of cash buyers, according to data from Redfin Corp.
Danielle Hale, the chief economist at Realtor.com, remarked on the persistent hurdles elevated mortgage rates pose, affecting both first-time and repeat buyers. The economic landscape is under scrutiny as the Federal Reserve contemplates its future actions amidst signs of economic resilience. Notably, manufacturing activity saw expansion in March for the first time since the previous fall, and the job market remains robust.
This week, Federal Reserve Chair Jerome Powell indicated a cautious approach, awaiting more definitive economic indicators before adjusting the central bank's benchmark rate. Although a rate cut is anticipated within the year, Freddie Mac's chief economist, Sam Khater, suggests that significant rate reductions are unlikely in the immediate future. However, he noted a silver lining with a slight improvement in housing inventory, which could moderate the pace of home price increases.
Amidst these financial developments, other noteworthy news includes challenges and innovations across various sectors, from the costly takeover of Texas toll roads to Apple's exploration into home robotics, and the geopolitical tensions involving Kim Jong Un. Additionally, the aftermath of a major earthquake sees TSMC resuming production swiftly, while Saudi Arabia's ambitious foreign investment goals face hurdles.
In the realm of business, intriguing stories unfold, such as Elon Musk's platform grappling with content issues, Hertz's tumultuous venture into electric vehicles, the uncertain future of the beloved children's show Bluey, Boeing's cultural overhaul through new aircraft development, and RBC's struggle to align its financing practices with environmental goals.
