Mortgage rates rose modestly but remain below 6.5%. According to Freddie Mac, the average rate on a 30-year fixed mortgage ticked up to 6.43% from 6.39% the previous week. Although mortgage rates will continue to fluctuate in the following months, the overall trend will continue downward. NAR projects mortgage rates will fall to 5.8% by the end of the year.
In April, rates averaged 6.3%. At this rate, Americans need to put 20% down for a median-priced home if they don’t want their monthly mortgage payment to take up more than 25% of their income. However, data shows that nearly half of renters – 21 million renter households – spend more than 30% of their income on rent.