What’s Causing Unusual Buying Patterns?

According to a recent report by Bankrate, mortgage rates across the board are on the rise for a second straight week, even though sales are down for the third straight month. Usually, Bankrate reports, it is good news for buyers when sales drop for numerous consecutive months at the height of the purchasing season—these factors are ripe to create a buyers market. However, low inventory and a large pool of would-be buyers keeps the current seller’s market in tact.

As previously reported, the National Association of Realtors said the lack of available homes in the market currently are driving home sales down even though the strong economy is causing an influx of potential buyers.

“Buyer interest is solid, but there is just not enough supply to satisfy demand," says Lawrence Yun, NAR Chief Economist. "Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast."

Benchmark 30-year fixed-rate mortgages rose from 4.05 percent to 4.07 percent this week. A year prior, that figure sat at a low 3.61 percent. Month-over-month it is down 0.02 percent from 4.09 percent. Compared to the 52-week high and 52-week low, it is 0.37 percent below, and 0.55 percent above, respectively. Currently, at the 30-year rate buyers will pay $481.46 for every $100,000 they borrow, which is up from $480.30 last week. Even the 30-year fixed-rate jumbo mortgage increased a paltry 0.01 percent, from 4.00 to 4.01 percent.

The 15-year fixed-rate mortgage was also up to 3.31 percent from 3.27 percent. Buyers at the current 15-year fixed-rate mortgage rate will pay $705.59 for every $100,000 they borrow. This is up from $703.64 the week prior.

The 5-year adjustable-rate mortgage rose to 3.52 percent from 3.47 percent. Buyers will pay $450.16 at the current 5/1 ARM rate for every $100,000 they borrow, according to BankRate. This is also up from last weeks $447.37