Instant Reaction: Mortgage Rates, July 03, 2024
Facts: The 30-year fixed mortgage rate from Freddie Mac increased to 6.95% over the last week from 6.86%. This is the first weekly increase since May 30. At 6.95%, with 20% down, a monthly mortgage payment on a home of $400,000 is $2,118.
Positive: While mortgage rates increased this week and affordability is bleak, there is also slightly more existing inventory coming onto the market. Home buyers at higher incomes may stand a chance to have their offer accepted as moderate-income buyers are forced to the sidelines—this is especially true of first-time buyers who have been largely shut out of the market.
Negative: The lock-in impact of higher rates for a prolonged period means someone who purchased or refinanced a $400,000 home at 3% vs. 6.95% would have a monthly mortgage payment of $1,349, a difference of $769 a month. This is unfathomable for many Americans, even with life changes.Categories
Recent Posts
Instant Reaction: Jobs, September 6, 2024
HMDA and Housing Demand
Instant Reaction: Mortgage Rates, September 5, 2024
August 2024 Commercial Real Estate Market Insights
Instant Reaction: Mortgage Rates, August 29, 2024
Pending Home Sales Dropped 5.5% in July
Trends in Housing Affordability: Who Can Currently Afford to Buy a Home?
July 2024 Foot Traffic
Existing-Home Sales Advanced 1.3% in July, Ending Four-Month Skid
What Is "Demure and Mindful" to Real Estate? Let's Look at First-time Buyers
5966 Fairview Rd, Suite 400, Charlotte, NC, 28210, United States