Real Estate Update: Mortgage Rates Hover at 6%

According to Freddie Mac, the national average interest rate for a 30-year fixed-rate mortgage has been declining slightly over the past three weeks, with the national rate reaching a low of 6.32% for the week of March 30, 2023. 

This dip in rates has led to an uptick in new mortgage applications, with the Mortgage Bankers Association reporting a 2% increase in new mortgage applications from the previous week. There has been a steady increase over the past four weeks. 

Here in Alabama, the statewide average currently stands at 6.9%, with FHA-backed mortgages at a much lower 6.24%. 

Experts within the financial industry expect the rates to continue to hover around 6%, with predictions from Freddie Mac and Fannie Mae estimating a yearly average of 6.4 and 6.8%, respectively.

Here in Huntsville, the market continued to be sluggish during the last week of March. According to the Huntsville Area Association of Realtors (HAAR), new listings and pending sales for single-family homes decreased that week, by 10.3% and 11.4%, respectively. New listings for townhouse/condo units picked up by 6.4%, but pending sales were down by 30%. 

Inventory for both single-family and townhouse units continued to increase, with an 86.2% increase in single-family units, and a 60.9% increase in townhouse units. 

Taken as a three-month average from January to the end of March, the inventory of available homes has increased by 99% for single-family units and 98.1% for townhouse units, compared to that same period last year. 

At the same time, the three-month average for pending sales has declined by 20% and 25%, for single-family and townhouse units relative to the previous year, and new listings have declined by 17.9% and 33.8%. 

The market is expected to pick up in April.

The Huntsville Business Journal will continue to monitor market conditions, so that our readers are able to make informed decisions about their real estate needs.