• Skip to main navigation
  • Skip to content
  • Skip to footer

Quick Search

Parkland FL Homes for saleParkland FL Homes for sale

Search homes for sale in Parkland and surrounding areas

  • Home
  • Search
    • Advanced Search
    • Featured Properties
    • Newest Homes for Sale
    • Upcoming Open Houses
    • My Account / Login
  • Area
    • Parkland
    • Boca Raton
    • Coconut Creek
    • Coral Springs
    • Margate
    • Tamarac
  • Buy
    • Steps to Buying
    • Mortgage Calculator
  • Sell
    • Free Home Valuation
    • Marketing Your Home
    • Selling your Home with Jon Klein
  • Reviews
  • Contact
SearchClose

What’s Ahead For Mortgage Rates This Week – March 28, 2016

What's Ahead For Mortgage Rates This Week - March 28, 2016Increasing Home Prices Good For Sellers

The National Association of Realtors (NAR) reported lower sales of pre-owned homes in February. Would-be buyers were discouraged by rapidly rising home prices. Short supplies of available homes sidelined potential buyers as higher home prices and cash buyers squeeze out buyers who need mortgages to buy homes. Multiple offers resulting in bidding wars have also deterred buyers in high demand markets. According to NAR’s February report, sales of existing homes fell 7.10 percent to their lowest level since November.

NAR has predicted that rapidly rising home prices would eventually damage housing markets. While analysts weren’t certain whether February’s report indicated a temporary lull due to weather and anomalies related to new closing regulations and seasonal influences, NAR Chief Economist Lawrence Yun said, “The main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers.”

During the housing bubble, buyers jumped into the market as speculators or to buy before home prices increased beyond their reach. NAR surveyed renters last week and found that the percentage of renters who believed that it’s currently a good time to buy a home decreased.

Respondents to Fannie Mae’s February Home Purchase Sentiment Index forecasted a 1.70 percent increase in home prices year-over-year. One year ago, respondents expected home prices to increase by 2.50 percent year-over-year. This may suggest that home prices are cooling. This can be expected as the number of buyers declines as home prices become increasingly unaffordable.

New Home Sales Up in February

New home rose in February according to the Commerce Department. Based on a revised reading of 502,000 new home sales in January, February’s reading was 2.00 percent higher than January’s reading, but was 6.10 percent lower than for February 2015.

Builders have held back on increasing construction due to concerns about ups and downs in the economic recovery. Short supplies of labor and available land have also kept home builders from meeting current demand.

Mortgage Rates Trend Lower

According to Freddie Mac, average mortgage rates fell across the board last week. The rate for a 30-year fixed rate mortgage fell by two basis points to 3.71 percent; the rate for a 15-year fixed rate mortgage fell three basis points to 2.96 percent and the rate for a 5/1 adjustable  rate mortgage fell four basis points to 2.89 percent.

New jobless claims rose to 265,000 from the prior week’s reading of 259,000 new claims. Last week’s reading matched analyst expectations.

What‘s Ahead This Week

This week’s scheduled economic news includes reports on inflation, pending home sales, Case-Shiller’s Home Price Index reports and government and private sector employment data. Weekly reports on mortgage rates and new jobless claims are also scheduled. 

Posted in: Financial Reports Tagged: Financial Reports, Mortgage Rates

Post navigation

« Accent Walls: 3 Easy Ways to Spice up Your Space
The FHA Mortgage Minimum Credit Score Has Been Reduced. Here’s What You Need to Know… »

Contact Jon Now

Parkland FL REALTOR®Jon Klein, REALTOR®, P.A.,GRI

954-415-5595 Direct

954-449-9325 Office

954-827-0464 Fax

jon@jonklein.com

5691 Coral Ridge Drive
Coral Springs, FL 33076

RE/MAX 1st Choice Logo, Coral Springs, FL
Jon Klein Team Logo, Parkland, FL

Connect with Us

© 2025 · RE/MAX 1st Choice, Jon Klein · Direct: 954-415-5595 · Fax: 954-827-0464 · Sitemap · IDX Sitemap · IDX XML Sitemap · Parkland FL Homes for Sale · Privacy Policy | Accessibility Statement

Disclaimer - All Rights Reserved by RE/MAX 1st Choice, Jon Klein
Direct: 954-415-5595 | Find me on Google | Directions to Jon Klein

Log in · Real Estate Websites by Real Estate Websites by YourSiteNeedsMe.com