Some good news for all of you future homeowners out there! The stars are starting to align and mortgage rates have taken a dip once again!
Well, well, well, looks like the stars are aligning for all of you future homeowners out there! Mortgage rates are taking a step back, and home prices are holding steady, which is fantastic news! Our sources predict that if this trend continues, we’ll see a surge in homebuying during the spring season. And to sweeten the deal, the average mortgage rate is calculated from thousands of lenders nationwide, so there’s plenty of opportunities for everyone. Please note that these rates are based on excellent credit and a 20% down payment, so be sure to keep that in mind!
Mortgage rates have dropped for the second consecutive week, with the 30-year fixed-rate mortgage averaging at 6.42% in the week ending March 23, down from 6.60% the previous week. This comes as worries about bank failures and financial market uncertainty persist. It’s worth noting that this time last year, the 30-year fixed-rate was at 4.42%. According to data from Freddie Mac, these recent drops in mortgage rates are attributed to ongoing financial market concerns.
Now on to the Not so Great News …. Home Pricing
Unfortunately, home affordability took a hit in February. But don’t worry! Although rates are still higher than they were a year ago, an economist is forecasting a gradual decline and predicts that the 30-year fixed rate will drop to around 5.3% by year-end. Homebuyer affordability decreased in February, with the national median monthly payment for those applying to purchase a home rising nearly 5% to $2,061 from $1,964 in January. So, let’s keep our fingers crossed that things start looking up soon.
Each downward tick in mortgage rates is met with increased buyer demand, as many eager home shoppers take advantage of the slightly lower cost of financing a home, Home shoppers are looking to find the optimal combination of prices and mortgage rates before entering the market. At the current price and mortgage rate level, the typical housing payment on a median-priced home is 43% higher than one year ago.