Mortgage rates picked a lousy time to go up.
The average rate on a 30-year fixed-rate mortgage rose 11 basis points, to 6.97%, in the week ending April 17, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point. This marked the highest interest rate for the 30-year mortgage since the week ending Jan. 16.
A good time to sell — usually
The week of April 13 to 19 is typically the best time of the year to sell a house. That’s when the market tends to have the ideal balance of conditions favoring home sellers, more so than any other week in the year, according to a data analysis by Realtor.com.
Buyer interest is usually up this time of year, with 17.7% more views per online real estate listing than a typical week, according to the analysis.
But with mortgage rates around 7%, how many of those online “lookie-loos” are actually taking the next steps — like touring houses and making offers? More home buyers would take the plunge if mortgage rates were closer to 6% than 7%.
(By the way, Realtor.com says the best week to sell varies by market — for example, March 9 in Denver, May 11 in Birmingham, Alabama — but in most places, it’s April.)
More houses, maybe more bargains
Buyers have more properties to choose from, with 30% more active real estate listings in the first week of April compared to a year before, according to Realtor.com. Listings are also lingering longer on the market. These housing market conditions favor buyers. And now comes the trend that makes life harder for buyers: Mortgage rates are rising, making houses less affordable.
“Moreover, consumers are feeling anxious about the economy and the rising cost of living, potentially leading them to adopt a ‘wait and see’ approach regarding significant purchases like homes,” said Kara Ng, senior economist for Zillow Home Loans, in a news release.
Buyers benefit when enough of them hang back. As houses take longer to sell, the inventory of for-sale houses rises. The increased supply gives buyers more negotiating power on prices, resulting in slower price growth.
In a quarterly survey of housing experts conducted on behalf of Fannie Mae, the average forecast was for home prices to rise 3.4% in 2025. That’s down from a 5.8% rise in prices in 2024.
Fed rate cuts could be delayed
The rise in mortgage rates can be traced to the announced tariff hikes, which are expected to increase both unemployment and inflation, according to Jerome Powell, chair of the Federal Reserve.
Speaking Wednesday at the Economic Club of Chicago, Powell implied that the inflationary tariff policy could push the Fed to cut short-term rates later rather than sooner. That grim outlook, in turn, could keep mortgage rates elevated longer.