Instant Reaction: Mortgage Rates, January 25, 2024

This week, there is a lot of good news in the housing sector. For the sixth consecutive week, mortgage interest rates stayed in the range of 6.6% and are now at 6.69%. Home buyers are responding to the lowering of mortgage interest rates, and foot traffic (according to SentriLock, LLC., a lockbox company) improved—increasing 5% year-over-year in December. Mortgage applications are also encouraging, with applications up 3.7% from a week prior. New home sales also increased.

For a home buyer shopping for a single-family existing home, the median home price was $387,000 in December. The median price for a new single-family home was $413,200. A buyer purchasing an existing home with a 20% downpayment would have a median monthly mortgage payment of $1,996. A buyer purchasing a new home with a 20% downpayment would have a monthly mortgage payment of $2,131.

There is no question that 2023 was a rough year in housing, but there are plenty of reasons to see optimism in 2024. Lower mortgage interest rates will have buyers and sellers reconsider sitting on the sidelines. Family changes, new jobs, and retirements have happened and will continue to happen, and housing consumers will need to find new locations and homes that fit their lifestyles.