With the increase in mortgage rates, the real estate market sees a surge in new listings, reaching a level not seen in nearly three years, says Realtor.com.
Mortgage rates climbed this week after the Federal Reserve opted to maintain its benchmark borrowing rates unchanged. According to Freddie Mac, the average rate for a 30-year fixed home loan rose from 6.74% to 6.87% for the week ending March 21. Despite this uptick, homebuilders remain optimistic about the housing market due to pent-up demand, supply shortages, and expectations of future rate cuts by the Federal Reserve.
Spring has brought positive news for the housing market as well, with a significant increase in new listings. Compared to last year, there was a notable 17.8% surge in sellers listing their homes in the week ending March 16, marking the highest year-over-year growth rate since May 2021. This influx of new listings provides buyers with more options as they enter the spring homebuying season.