David Bahnsen, Managing Partner of Bahnsen Group, discusses market volatility and analyzes the real estate market on The Big Money Show.
Mortgage rates rose nearly 7% this week, and existing home sales rebounded from falling interest rates two months ago.
Freddie Mac's latest Primary Mortgage Market Study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage It rose to 6.84% from 6.78% last week. A year ago, the average interest rate on a 30-year loan was 7.29%.
A “For Sale” sign is posted in front of a home for sale on March 18, 2022 in San Rafael, California. (Justin Sullivan/Getty Images/Getty Images)
Meanwhile, the National Association of Realtors reported Thursday that existing home sales rose 3.4% from the previous month to 3.96 million units in October, breaking the 14-year low set in September.
“Home sales surged in October as mortgage rates fell below 6.25% in September,” said Holden Lewis, home and mortgage expert at NerdWallet. “Once interest rates fell, buyers acted quickly, making offers in September and closing in October.”
Many buyers and sellers are waiting to see if interest rates will fall further. According to Zillow research, about 80% of mortgage holders currently have interest rates below 5%.
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The average interest rate for 15-year fixed mortgages also fell slightly to 6.02% from 5.99% last week. A year ago, interest rates on 15-year fixed bonds averaged 6.67%.
