U.S. home price growth increased by 3.1% in March, according to new data from CoreLogic. While this represented the 134th consecutive month of year-over-year price acceleration it also represented the lowest rate of appreciation since the spring of 2012.

“The 30-year fixed-rate mortgage increased modestly for the second straight week, but with the rate of inflation decelerating rates should gently decline over the course of 2023,” said Sam Khater, Freddie Mac’s chief economist. “Incoming data suggest the housing market has stabilized from a sales and house price perspective. The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.”

Strong homebuyer demand is providing more support for home prices than economists at Fannie Mae had expected at the beginning of the year, but forecasters at the mortgage giant expect tight for-sale inventory will keep sales “subdued” for the rest of the year.

Mortgage rates decreased for the fifth consecutive week. Incoming data suggest inflation remains well above the desired level but showing signs of deceleration. These trends, coupled with tight labor markets, are creating increased optimism among prospective homebuyers as the housing market hits its peak in the spring and summer.

U.S. weekly averages as of 04/13/2023:

30-Yr Fixed Rate Mortgage 6.27%

15-Yr Fixed Rate Mortgage 5.54%

Source: Freddie Mac, Primary Mortgage Market Survey®

For most home buyers, the purchase of real estate is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. This is part of the annual survey conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers.

First-time buyers made up 26%, down from last year's 34%. This is the lowest share of first-time buyers since the data collection began.

A decline in home prices and mortgage rates has spurred a greater level of early-stage homebuying demand, according to new data published by the brokerage Redfin (NASDAQ:RDFN). However, rising demand is not translating into rising home sales.

Redfin’s Homebuyer Demand Index, a seasonally adjusted measure of requests for home tours and talking to the company’s agents about home searches or offers, reached its highest level since last May during the week ending March 26.

RECAP on how this new program works..

Requirements:

*Must be a first time homebuyer

*Conventional loan only

*Occupy as a primary residence

* homebuyers counseling required (regular Calhfa and the Dream For All)

*SFR, condos, PUDs, manufactured homes are all permitted

*Occupy as a primary residence

*680 minimum credit score

Details:

*Dream for All provides a loan for up to 20% of the purchase price