Mortgage interest rates remained relatively steady in the last week at an elevated rate of 7.19% for the 30-year fixed. The newest data, released today, shows that the typical single-family existing home was $413,500 last month. For that home, the typical monthly mortgage payment would be $2,243.
While the Fed paused rate hikes, ultimately impacting the mortgage rates, the elevated rates impact where a buyer can purchase and how much home they can afford today. In 2024, mortgage interest rates may fall if rate hikes stop and inflation continues to cool. It is important to note that while mortgage interest rates are a huge driver of the home-buying market, they do not matter for the 27% of the market who are paying all cash. In August 2019, all-cash buyers were just 19% of the buying market. Over the last year, all cash buyers have averaged 27%. However, the typical first-time, single, or minority buyer has no ready cash to purchase a home. This continues to be a housing market of haves and have-nots.