. But as rates have slowly fallen from a peak of 7%, the housing market has shown early signs of stirring back to life.
The rise in home prices in February came amid a sharp decline in mortgage rates: Freddie Mac reported that rates on the 30-year fixed mortgage fell to about 6.09% at the beginning of the month before turning higher and climbing to 6.65%. Rates have declined again in the wake of two bank failures after the federal regulators stepped in to shore up confidence within the financial system. Another problem confounding potential homebuyers is a lack of supply that has pushed the price of homes even higher.
"The unfortunate reality is that the scarce supply of inventory that’s the source of so much market gridlock isn’t getting any better," Walden said. "Without a significant shift in interest rates, home prices or household income, this is a self-fulfilling dynamic that is quite likely to continue for some time."