Facts: The 30-year fixed mortgage rate from Freddie Mac eased slightly to 6.99% over the last week from 7.03%. At 6.99%, with 20% down, a mortgage payment on the median-priced existing home of $400,000 is $2,127. In the most expensive MSA of San Jose-Sunnyvale-Santa Clara, CA (median price of $1,840,000), the monthly mortgage payment is $9,783 (jumbo loan not factored in). In the most affordable MSA of Decatur, IL (median price $122,800), the monthly mortgage payment is $653.

Positive:  Real estate is local. A home buyer can improve their credit score, debt-to-income ratio, and lower an interest rate provided by the bank. Mortgage rates are one variable in a larger equation.

Negative: While there is hope that the FOMC's federal funds rate will be lower by the fall of 2024, most believe it will not move next week. But there is even more pressure: The European Central Bank and Bank of Canada have cut rates. When is it the U.S.’s turn?
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