Thirty-year and 15-year fixed rates rose slightly, while 5/1 ARM rates held steady today, according to a NerdWallet survey of mortgage rates published by national lenders Tuesday morning.
Mortgage Rates Today, Tuesday, March 7:
Americans are more optimistic about housing
Rising mortgage rates and tight housing inventory don’t seem to be getting Americans down. Fannie Mae’s latest Home Purchase Sentiment Index shows growing confidence regarding the housing market.
In a monthly phone survey of 1,000 Americans, the February Fannie Mae report found more respondents believing that now is a good time to buy (up 11 percentage points to 40% total) — or sell (+7 points to 22% of the total) — a house.
However, the poll also found a higher percentage of those surveyed who believe home prices will continue to rise (+3 points to 45%).
Much of the optimism apparently springs from Americans’ belief that they have greater job security and are making more money than 12 months ago.
“Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time home buyers,” Doug Duncan, chief economist at Fannie Mae, said in a news release. “Preliminary research results from our team find that millennials are accelerating the rate at which they move out of their parents’ homes and form new households.”
However, Duncan said millennials, and first-time home buyers in general, still face “affordability constraints” due to higher home prices and slow growth in home supply.
Three survey metrics rose to all-time highs: the net share of respondents who believe now is a good time to sell (22%), Americans who are not concerned about losing their jobs (78%) and those who say their household income is higher than 12 months ago (19%).
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.