The 30-year mortgage rate increased to 6.78% from 6.77%. (iStock )
Mortgage rates have remained stable for the most part this week. As of July 25, the average rate for a 30-year mortgage is 6.78%. Freddie Mac isThat’s just a slight increase from last week’s 6.77%. Rates were at a similar level last year, averaging 6.81%.
“Mortgage rates were roughly stable from last week but are down almost a half percentage point from their peaks earlier this year,” said Sam Carter, chief economist at Freddie Mac. “Despite lower interest rates, buyers continue to hold off on purchases, as reflected in declining sales data for new and existing homes.”
Interest rates on 15-year fixed-rate mortgages also increased slightly, averaging 6.07%, up from 6.05%. A year ago, 15-year mortgages were a bit higher at 6.11%.
Homebuyers who want to see what loan terms and interest rates are right for them can use Credible’s free online tool to find the rate that’s right for them in minutes.
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Property listings outnumber home sales
Sellers are tired of waiting for mortgage rates to drop significantly, sparking a surge in listings not seen in years on the market. Rate lock-ins that held sellers back are gradually lifted, giving buyers more options.
Compared to last year, the number of residential properties has increased by 30%. According to Fannie MaeHowever, the increase in listings has not translated into an increase in home sales, which are down overall compared to the same period last year.
Home prices have been rising for years, making many buyers cautious about their options. Experts predict the housing market will calm down soon, so many potential buyers are opting to wait until prices come down.
“Despite a gradual increase in the supply of new and existing homes, the housing market continues to wait for home affordability to improve,” said Doug Duncan, Fannie Mae’s senior vice president and chief economist.
“While mortgage rates have recently fallen slightly in response to data showing a gradual slowdown in economic growth, this has not been enough to overcome the significant affordability constraints placed on would-be homebuyers,” Duncan said. “As a result, despite the rise in listings, actual home sales are not increasing.”
Housing markets vary widely depending on where a buyer is located, so housing markets remain tight in certain parts of the country and are likely to remain that way for some time.
“While we expect home price growth at the national level to slow in the near term but remain positive, it is important to keep in mind that conditions often vary by region, particularly with regard to supply,” Duncan said. “For example, many Sunbelt cities are currently experiencing significant increases in available home inventory, driven in part by new home construction, while supply remains extremely tight in much of the Northeast and Midwest.”
If you’re thinking about buying a home in today’s market, you can explore your mortgage options by visiting Credible and comparing rates and lenders in minutes.
Many homes remain on the market and price declines are frequent
Bargain-seekers should look to the Midwest
While housing prices remain high across much of the country, some areas have yet to reach all-time highs. The Midwest remains one of the more affordable areas, especially in Ohio and Indiana. Found Realtor.com.
Ranked number one on Realtor.com’s home affordability rankings is Fort Wayne, Indiana. The city is located near many major cities, including Chicago, Cincinnati, and Detroit.
“Homes under $200,000 are in high demand and sell quickly,” says Fort Wayne real estate expert David Brough. “These homes usually have multiple potential buyers.”
Being so close to the big city allows Fort Wayne residents to enjoy the benefits of a big city with the safety of a smaller community.
“For a lower cost than other big cities in the country, you can buy a really nice home and live in a community that’s safe and has lots to do,” Brough said.
The next two cities on Realtor.com’s list are Canton and Akron, both in Ohio. Both cities have median home prices in the $250,000 to $270,000 range, making them relatively affordable compared to other markets.
“While home prices and mortgage rates remain high in many parts of the country, struggling buyers are seeing affordable housing grow in the Midwest,” says Hannah Jones, senior economic research analyst at Realtor.com. “Buyers in these markets can enjoy lower home prices without sacrificing their job prospects or lifestyle amenities.”
To see if you qualify for a mortgage based on your current credit score and salary, check out Credible , which lets you compare multiple mortgage lenders at once.
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