Mortgage rates fell from 6.95% to 6.89% last week. (iStock)
Mortgage rates continue to fluctuate, declining slightly from last week when average rates were close to 7%. The average rate for a 30-year fixed-rate mortgage was 6.89% as of July 11. Freddie Mac is.
Currently, interest rates on 30-year mortgages are lower than they were at this time last year, when they averaged around 6.96%.
“The 10-year Treasury yield fell this week following the June employment report which showed a weakening labor market, and mortgage rates followed suit,” said Sam Carter, chief economist at Freddie Mac.
The average interest rate on a 15-year mortgage also fell to 6.17% from 6.25% last week. These mortgage rates are lower than last year, when the average interest rate on a 15-year mortgage was 6.30%.
Inventory is rising, coupled with falling interest rates, which is good news for current buyers.
“There is increasing inventory on the market and a significant number of properties at reduced prices, which is an encouraging sign for prospective buyers,” Mr Carter said.
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Home sales prices hit record high for ninth consecutive week
Despite falling mortgage rates and rising housing inventory, soaring home prices continue to reduce home affordability. In the four weeks ended July 7, the average home price hit a record high of $397,482. According to Redfin data,.
Recent home price gains are up 4.7% year over year, the largest increase in the past four months. Inventory is increasing but still remains at historically low levels, which combined with rising prices has created a poor market for most buyers.
Still, the fact that inventory is slowly increasing is a good sign for the overall market. But many of these properties are getting older, leading to lower prices. That’s good for buyers, but not so good for sellers. Currently, more than 60% of homes are listed for at least a month before going under contract.
“Homes tend to hang on the market longer than usual during this time of year, which results in some homes — but not all — selling for a little less,” said Julie Zubiate, an agent with Redfin Premier in the Bay Area.
“The longer interest rates remain high, the more picky buyers will become. They’ll be quick to upgrade or negotiate down the price if there’s even a small issue. Sellers need to take the time to properly stage, price and advertise their home to find the right buyer,” Zubiate said.
Learn about mortgage rates and what it takes to get a mortgage with help from Credible.
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Gen Z remains optimistic about buying a home in the near future
The generation that is stubbornly optimistic about the home-buying market is Gen Z. They have a relatively positive outlook, and many of them plan to buy a home this year. ServiceLink Survey.
Of those surveyed, 63% of Gen Z plan to buy a home in 2024, compared to 59% of Millennials. Because Gen X is a bit older, many members of this generation have already purchased a home, which is probably why only 49% of Gen X plan to buy this year.
Gen Z may feel confident about the home buying process, but many of them don’t have the income needed to make a purchase. 33% of Gen Z survey respondents have an average income of less than $50,000, and only 22% have an income over $100,000. Given the average income needed to buy a home: Over $100,000This puts many Gen Zers off buying them.
This lack of affordability is why some members of Gen Z are pooling money with friends to make buying a home more realistic: About 22% of Gen Z surveyed have pooled money with friends to buy a home, compared to just 14% of millennials and 10% of Gen Xers, according to ServiceLink.
To see if you qualify for a mortgage based on your current credit score and salary, consider visiting Credible, which allows you to compare multiple mortgage lenders at once.
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