With 42 percent, baby boomers now make up the biggest generational group of homebuyers.
Interest rates on 30-year fixed-rate mortgages declined on a weekly basis, with rates expected to remain around the 6.5 percent level for the major part of the year.
The average weekly rate on these mortgages was 6.64 percent for the week ended April 2, according to data from Freddie Mac. This is a decline from 6.65 percent in the previous week and was the second consecutive weekly drop in rates.
“Over the last month, the 30-year fixed-rate has settled in, making only slight moves in either direction,” said Freddie Mac chief economist Sam Khater.
“This stability is reassuring, and borrowers have responded with purchase application demand rising to the highest growth rate since late last year.”
In a commentary last week, Lisa Sturtevant, chief economist at real estate data company Bright MLS, said that many prospective homebuyers waiting for mortgage rates to fall may be frustrated that the rates were not declining in any substantial manner.
Just half a percentage-point reduction in rates cuts down the monthly mortgage payment for a typical borrower by around $120, she said.
“Even though rates are only slightly lower than they were a year ago, buyers do have some leverage heading into the spring market,” Sturtevant said.
“With more inventory on the market, more sellers are dropping their asking prices and are less likely to receive multiple offers. Sellers are also more willing to negotiate with buyers on concessions like cash for repairs or closing cost assistance.”
While mortgage rates are expected to decline through this year, they are likely to remain in the mid-6 percent range for most of 2025, according to Sturtevant.
Kimberly Freutel, a Redfin Premier agent in Sammamish, Washington, said that buyers are cautious about committing as they are worried about potential layoffs and the economy while also wondering whether mortgage rates would drop further later this year.
However, since other buyers are cautious as well, “some house hunters are getting homes for under asking price,” she said.
“If you love a home, and you see yourself living there for at least four or five years, make an offer you’re comfortable with, even if it’s a little below list,” Freutel added. “Don’t assume it will escalate out of your price range, because the seller might actually take it.”
