Mortgage rates

Despite home purchasing power growing for the 14th consecutive month in February, rising property values and mortgage rates are likely to influence would-be sellers to stay put, according to First American.

Inflation, an improving economy and the increased federal budget deficit make rate increase inevitable this year, the Mortgage Bankers Association said.

While it’s the third straight week of a downward trend, borrowers likely have only a brief opportunity to take advantage of sub-3% rates before a reversal comes.

While purchase volume is seeing its usual seasonal pickup, lower rates caused a spike in activity among existing homeowners looking to refinance.

The government sponsored enterprise’s latest forecast calls for a nearly $4 trillion year for 2021.

Rising cases and vaccine issues caused bond yields to fall, but inflationary pressures will likely reverse that course.

The shift ended a long run of higher rates that have depressed loan application activity, and it temporarily creates a new refinancing incentive for some borrowers.

Vaccinations and a third round of stimulus payments are boosting consumers views on the housing market, according to Fannie Mae.

Mortgage rates that are rising in tandem with a recovering economy dampened borrower activity, even with prime homebuying season underway.

The increase won’t hurt the incentive for the average home shopper, but it means those who were looking to “buy the dip” in prices amid the pandemic may have missed their chance.