Real estate agent Sam DeBianchi, president of DeBianchi Real Estate, gives advice to millennials struggling to buy a home on Making Money.
While home prices remain high, mortgage rates have risen slightly for the second week in a row, and many buyers are still waiting for costs to come down before making a move.
Still, rising demand has some economists expressing cautious optimism. housing market.
Freddie Mac's latest primary mortgage market study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage pushed up to 6.66% This week's rate has increased from 6.62% last week. The average yield on popular banknotes a year ago was 6.33%.
On April 29, 2022, a pending sale sign is posted in front of a home listed for more than $1 million in San Francisco. Although demand in the housing market recovered somewhat at the beginning of the year, home prices remain elevated due to inventory shortages. (Justin Sullivan/Getty Images/Getty Images)
At the same time, 15-year fixed mortgage rates declined slightly for the second year in a row to an average rate of 5.87.% Last week it was 5.89%. A year ago, the average interest rate on a 15-year fixed bond was 5.52.%.
A sharp drop in interest rates could drive demand and send home prices soaring: Katrina Campins
“Mortgage rates haven't moved much over the past three weeks, staying in the mid-6% range, which is driving homebuyer demand slightly higher,” said Sam Cater, chief economist at Freddie Mac.
Homes under construction in Sacramento, California on Monday, July 3, 2023. As the inventory of existing homes for sale remains low, buyers are increasingly turning to new homes. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
“Even this modest increase in demand, coupled with still-tight inventories, continues to drive prices up faster than incomes, meaning affordability remains a major headwind for buyers,” Carter said. Stated. “Prospective homebuyers should carefully consider existing state and local resources, including down payment assistance programs that can significantly cover closing costs.”
First-time homebuyers face 'huge affordability challenges': Mitch Rochelle
Mortgage Bankers Association (MBA) Index Applying for a mortgage loan The index was up 9.9% for the week ending January 5 compared to a week earlier, the data announced on Wednesday.
An “Open House” sign outside a residence in Washington, D.C., Sunday, Nov. 19, 2023. The National Association of Realtors is scheduled to release existing home sales statistics on November 21st. (Nathan Howard/Bloomberg via Getty Images/Getty Images)
“2024 is off to a strong start, with both refinance and home purchase applications increasing, with overall activity up 10% for the week,” said MBA President and CEO Bob Bruksmit. “It has increased,” he said.
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He added: “With interest rates expected to remain below 7% for some time to come, the MBA expects housing market activity to pick up again in the spring, especially if housing supply continues to increase.” Ta.
