With mortgage rate volatility subdued, buyers are finding a reason to get back into the housing market. (iStock)
Mortgage rates rose slightly this week, but have remained steady at 6.6% in recent weeks, giving borrowers an incentive to get back into the housing market, Freddie Mac said.
The average interest rate on a 30-year fixed-rate mortgage for the week ending Jan. 25 was 6.69%, according to Freddie Mac's latest research. Primary mortgage market research. This was a slight increase from the previous week's average of 6.60%. A year ago, the average interest rate on a 30-year fixed-rate mortgage was 6.13%.
The average interest rate on a 15-year mortgage was 5.96%, up from 5.76% last week and 5.17% last year.
From late October to January, mortgage interest rates fell by more than 1 percentage point. Interest rates have remained stable in the mid-6% range, encouraging some buyers to return to the market, said Sam Cater, chief economist at Freddie Mac.
“The 30-year fixed rate has been in a very narrow range for the last month, settling at 6.69% this week,” Carter said. “Given this stabilization of interest rates, potential homebuyers with affordability concerns have jumped the fence and returned to the market. Inventory issues persist, but home prices continue to grow at a steady pace. We expect a busier spring homebuying season than in 2023 as housing prices continue to rise.”
Homebuyers can find the best mortgage rates by researching and comparing options. Visit online marketplaces like Credible to compare interest rates, choose loan terms, and get pre-approved from multiple lenders at once.
Buy a home in these states to get student loan debt relief
Sales of new homes increase
New home sales increased more than expected, proving that the housing market is thawing. According to statistics, new single-family home sales in December 2023 were at a seasonally adjusted annual rate of 664,000 units. Estimate Published jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 8.0% higher than the revised figure of 615,000 people in November and 4.4% higher than the predicted figure of 636,000 people in December 2022.
An estimated 668,000 new homes will be sold in 2023, an increase of 4.2% over 641,000 in 2022.
“There are some positive things in the market right now,” said Charles Williams, CEO of Percy, a real estate and mortgage behavioral analysis firm. “We expect homebuying activity to continue to recover throughout the year as fundamentals generally improve across the board and 30-year mortgage rates are likely to end 2024 at around 6%.
“With house prices likely stabilizing, smart home buyers will get into the market as soon as possible, as average monthly mortgage payments won't be much lower in the coming months,” Williams continued. .
If you want to refinance your mortgage to take advantage of current mortgage rates, or are ready to choose the best rate on your new mortgage, visit online marketplaces like Credible to compare rates and Consider getting pre-approved from multiple lenders.
Homeowners could save tens of thousands of dollars in damages by using smart devices
Housing prices have fallen slightly
According to the paper, U.S. home prices rose 0.4% in December from the previous month, the smallest increase since June. Redfin Home Price Index (RHPI). According to Zillow, the typical home price in the U.S. in January was $344,000, with a monthly mortgage payment of $1,790, assuming a 20% reduction.
With many existing homeowners locking down mortgage rates below 4%, there is little chance of home prices falling significantly this year. This means that even if mortgage rates fall, the market will likely continue to compete for supply and home prices will continue to rise.
“We expect to see a slow but steady recovery in home sales, driven by pent-up demand and optimism that lower mortgage rates will outpace expectations,” Dr. Thelma Hepp, chief economist at CoreLogic, said in a statement. It reflects that.” “However, housing affordability will not improve significantly this year as prices continue to rise and the decline in mortgage rates remains modest.”
Even if you're looking to become a homeowner, shopping around can help you find the best mortgage rates. Visit Credible to compare options without affecting your credit score.
Soaring home prices push mortgage limits above $1.1 million
Have a finance-related question but don't know who to ask? Email it to your trusted money expert. Moneyexpert@credible.com Your questions may be answered in Credible's Money Expert column.
