More homes hit the market as spring approaches

👋 Good morning! Are you ready for the week? Let's do this. Today's newsletter is 484 words, a 2-minute read.

1. Mortgage rates hit highest mark since mid-December

Mortgage rates surged to their highest point in over two months, as investors revised their forecasts based on new economic data and the anticipated timeline for changes in Federal Reserve policy, according to Freddie Mac.

The 30-year fixed-rate average jumped up 13 basis points to finish at 6.9% for the period ending Feb. 22. One week earlier, the 30-year average came in at 6.77%, while for the same seven-day period in 2022, the rate stood at 6.5%.

At the same time, the 15-year average saw an even steeper week-over-week increase, rising 17 basis points to 6.29% from 6.12%. In the same period, a year ago the average rate came in at 5.76%.

2. New Fannie Mae rate forecasts

Fannie Mae expects the 30-year fixed mortgage rate to average...

• 6.5% in Q1 2024 (previously 6.4%)

• 6.3% in Q2 2024 (p: 6.2%)

• 6.1% in Q3 2024 (p: 6.0%)

• 5.9% in Q4 2024 (p: 5.8%)

2025:

• 5.8% in Q1 2025 (p: 5.7%)

• 5.7% in Q2 2025 (p: 5.6%)

• 5.7% in Q3 2025 (p: 5.6%)

• 5.7% in Q4 2025 (p: 5.5%)

3. Catch up quick

❄️ Federal Reserve Governor Christopher Waller wants more evidence inflation is cooling before cutting interest rates. (CNBC)

🔻 Rocket posts a $233 million net loss in 4Q. Annual origination volume in 2023 was $78.7 billion, a 40% decline from 2022. (Detroit News)

🏡 Oregon is so green because it’s been literally illegal to build housing outside cities since the 1970s. That could be changing. (Fortune)

4. More homes hit the market as spring approaches

New listings posted their biggest increase in two months last week, but mortgage applications and pending sales declined as mortgage rates stayed stubbornly high.

More sellers are listing their homes as spring draws nearer. New listings rose 10% year over year during the four weeks ending February 18, the biggest increase in two months.

But many buyers are still sitting on the sidelines. Mortgage-purchase applications dropped 10% from a week earlier as daily average mortgage rates surpassed 7% for the first time since mid-December. Pending home sales are down 7% year over year.

5. Zillow's latest home price forecast

Last month, economists at Zillow issued a big revision, predicting that over the next 12 months, home prices would rise +3.5% instead of their previous forecast of -0.1%.

This week, Zillow economists issued another upward revision. Heading forward, Zillow’s forecast model expects home prices to rise +4.2% between January 2024 and January 2025.

You’re all caught up. See you on Wednesday!

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