What’s Really Happening with Kansas City Mortgage Rates?
Are you confused about what's currently happening with Kansas City mortgage rates? You may have heard reports that they're coming down but then saw a KC headline claiming they're increasing again. These mixed reports have left many Kansas City homebuyers and sellers scratching their heads and wondering what's true.
What's behind all this confusion? The simplest answer is that what you read or hear will vary depending on the time frame the reports are examining. Let's look at how the Just Say Home Team breaks down the current housing market data to help clear up the confusion.
Mortgage Rates Are Volatile by Nature
Too many factors are at play for home mortgage rates to move in a straight line. Instead, Kansas City rates bounce around as they're impacted by economic conditions, decisions from the Federal Reserve, and so much more. Kansas City mortgage rates can be up one day and down the next, based on the KC and national economies and the world as a whole.
The graph below uses data from Mortgage News Daily to illustrate the ebbs and flows in the 30-year fixed mortgage rate since last October:
The graph shows numerous peaks and valleys – some more significant than others. When you use data like this to explain the current Kansas City housing market, the story can vary based on which two points in the graph are being compared.
For example, if you only look at the beginning of February 2024 through today, you can conclude that KC mortgage rates are increasing. However, when comparing the latest data point to the peak in October, rates have trended down. With this in mind, what's the right way to look at it?
The Big Picture
Kansas City mortgage rates will always fluctuate - it's just how they work. It's important not to focus too much on the small, daily changes but to zoom out and look at the big picture. This will help you understand the overall KC housing market trend and what it means for you to buy or sell a home in the Kansas City area.
When you compare the highest point (October) to today's rates, you can see KC home mortgage rates have decreased compared to last year. Are you looking to buy a home in the KC area? This decline is noteworthy news - don't let the little blips distract you. Housing market experts largely agree that the downward trend could continue throughout the year.
Do you still have questions about what you're reading or hearing about the Kansas City housing market? Jennifer Smeltzer and her team of real estate experts can give you clarity on the latest housing market data and how it affects homes in the Kansas City area.