Mortgage rates dip under 7%, housing supply still low

As the spring homebuying season blooms, mortgage rates offer some reprieve, dipping below the 7% mark for the first time in over a month. While this downward trend may provide a glimmer of hope for prospective homebuyers, the housing market continues to grapple with a severe supply crunch.

Yahoo Finance's Julie Hyman breaks down the details.

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Angel Smith

Video transcript

Home buyers rejoice.

30 year fixed mortgage rates fell below 7% for the first time in more than a month.

This week, it's corner, Freddie Mac.

Now we're in the spring home buying season, of course, historically busiest time to grab a new home.

But sales have been low this year as higher rates take their toll.

So what's the supply picture really look like?

Julie Hyman takes a closer look in our chart of the day, Julie someone on the other side of the camera there, who's, uh, who's participating in that spring buying season?

But be that as it may, home buyers may rejoice at those slightly lower mortgage rates, but not at the availability of homes for sale on the market.

And this start coming to us from, uh, U. BS is John Lalo, who tracks publicly traded home builders.

But this right here is existing homes on the market for sale, the supply of those existing homes, and we did see that number improve a little bit.

The inventory approve a little a little bit in April, up 9% on a month over month basis.

But still, as you can see here, is very depressed.

OK, so what if you want to buy a new home, You lay that on top, you're still seeing it A pretty historical lows.

Although if you can see we are seeing the margin gap up a little bit.

In other words, we are seeing home builders build more homes because they see an opportunity here as there are fewer existing homes on the market.

So a little bit of a wider margin than you have seen in recent years.

And then there is, as Lavalla points out, the historical perspective here.

So what you're seeing is this dotted line is the historical average going all the way back to 1982?

Now, you can probably see that this is way above where we are right now.

And not only that, it is 1.6 standard deviations below that.

This is one standard deviation.

What does that mean?

It's just a mass term to say.

We are way below the average in terms of the housing supply that is out there.

Josh and Julie, you know, we were talking off camera about this Not so surprising, right?

Because we were discussing if you were locked in at 3%.

4%.

You're not moving.

I mean, what would be, you know, you would really need a strong motivation to move.

You're gonna be probably swapping your three or 4% for something closer to 7%.

Well, guess what?

The motivation is Price, Josh, in many cases, because, as we know, the median home sales price in April ticked up to $407,600.

So that's what we are seeing that true inventory will do that that'll do that now, for from Lolo's perspective, all of this is fairly be positive for home builders, because again, they're seeing an opportunity here.

But for people who are still trying to buy a home, this is not a very encouraging picture yet.

No, you just have to be really desperate, like your co actor Julie.

That's, uh, that's the move.

I'm not gonna say that, but you you can describe yourself that way.

If you thank you, Julie.

Thank you.