1. Rates this week

2. Most buyers want 5.5% or lower…

According to a recent John Burns Research and Consulting survey, 71% of potential homebuyers refuse to accept a 30-year fixed mortgage rate over 5.5%. Interestingly, according to Freddie Mac, the historical average mortgage rate since 1971 is 7.75%, much higher than what many buyers expect.

Potential home sellers, likewise, find the current rates to be unacceptable, contributing to the severe lack of supply on the market. New listings in the four weeks ending April 9 were 25% lower than the same week the year before, according to Redfin.

“Even if the Fed chooses not to hike interest rates next month, which would likely bring down mortgage rates, the limited supply of homes for sale would remain a major obstacle for would-be buyers,” wrote Daryl Fairweather, chief economist at Redfin, in the report. “Rates dipping below 6% would probably pique the interest of more buyers.”

3. MA Single Family Stats - March 2023

• Median Sale Price: $565,000, +5.97% Year over Year

• YTD Closed Sales: 6,689, -16.63% YoY

• Inventory: 4,157 homes for sale, +38.24% YoY

• YTD Inventory: +23.82% YoY

4. LLPA changes on Conventional loans become official 5/1/23

But have already been in place with most lenders since February/March….

Fannie Mae and Freddie Mac will enact changes to fees known as loan-level price adjustments (LLPAs) on May 1 that will affect mortgages originated nationwide, effectively tweaking interest rates paid by the vast majority of homebuyers.

This was announced in January and applies to loans SOLD to Fannie Mae or Freddie Mac by May 1 and have already been affecting rates offered to borrowers for the last 3 months.

Bad timing is an understatement, and with no good justification. We are not sure who these changes are meant to help… but we will continue finding ways to bring top level service to our clients and referral partners!

Quick hits…

💰 Entry-level home shoppers most likely to face bidding wars this spring (Zillow)

💣️ According to Kelley Blue Book, the average car payment is now $800 per month, which has doubled in three years

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