Facts: The average 30-year fixed mortgage rate from Freddie Mac decreased to 6.30%, down from 6.34% last week. At this rate, with a 20% down payment, the monthly mortgage payment is $1,981 for a home priced at $400,000. With a 10% down payment, the typical payment would be $2,228.
Positive: Over the last 5 weeks, mortgage rates have averaged 6.31%. This has provided savvy buyers a sweet spot to reexamine the home search process with more inventory, widening their choices.
Level-set: Buyers need to take into account home prices and the total cost of ownership. Higher rates for longer have exacerbated a “haves” vs “have-nots” housing market. Homeowners continue to build wealth, with nearly one-third making all-cash purchases on their next home, while potential first-time buyers are shut out of buying.
