This year national real estate news has focused mostly on the high demand and incredibly low inventory that plague markets across the country. Buyers, however, have cause to celebrate some good news coming their way, as mortgage rates continue to settle down.
Four of the past five weeks have seen continued settling of mortgage rates, with the average 30-year, fixed mortgage now at 4.55 percent, down from 4.57 percent just a week earlier, and the average 15-year, fixed mortgage rate a 4.04 percent, the same as last week.
The stabilizing of the mortgage market is good news for buyers, according to Sam Khater, chief economist of Freddie Mac. “The decrease in borrowing costs are a nice slice of relief for prospective buyers looking to get into the market this summer. Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago.”
Khater also looks to home prices as cause for hope for prospective buyers, as he believes price tags for property with even out similar to mortgage rates. He continues, “The economy and housing market overall are on solid footing this summer, which should support continued strength in housing demand. Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply.”