For the eighth week in a row, there has been overall stability for the 30-year fixed mortgage interest rate. Today, mortgage interest rates averaged 6.64% for the week. At the beginning of the week, the 10-year treasury moved higher, now at 4.1%, providing conjecture that the 30-year mortgage interest rate would also increase
While the stability in the mortgage market is welcome news to home buyers, affordability and limited inventory are concerns for the coming spring in some areas. Based on NAR's fourth quarter metro home prices report, 86% of metro markets had home price gains. While homeowners are seeing wealth gains from what is likely their most valuable asset, first-time buyers are struggling to find an affordable property. At the median single-family existing-home price of $391,700, the typical buyer with 20% down would have a monthly mortgage payment of $2,010.
For those first-time buyers who were successful in the last year, some were creative: moving in with family to save, making financial sacrifices, looking to partner with roommates to purchase, looking to lower downpayment options, and finding older homes with potential for appreciation. REALTORS® can guide buyers on a path that is no longer as direct as it once was to find their perfect home.