Based on NAR Research's forecast released today, the 30-year fixed rate is expected to peak in Q4 2023 and then decline—hitting 6.9% in Q2 2024.
Between 2018 and 2022, most applicants received a mortgage rate below 3%. In 2022, most applicants secured a rate between 5.5% and 6%.
Existing-home sales reached a 3.96 million seasonally adjusted annual rate in September 2023, down 15.4% from September 2022.
Compared to one year ago, affordability fell in August as the monthly mortgage payment climbed 26.2% and median family income rose 4.7%.
With today's interest rates at 7.63%, buying a typical existing condo at $353,800 would mean a monthly mortgage payment of $2,004.
This week, mortgage interest rates inched upwards and closer to the 52-year average (7.74% since 1971) by hitting 7.57%.
Consumer prices are not fully compliant, though they have decelerated from last year.
Despite high figures, 336,000 in September, over 4 million more jobs compared to pre-covid March 2020 numbers, it does not mean all is well.
The 30-year fixed mortgage interest rate now sits at 7.49% as of October 5, 2023, up from 7.31% last week.
Overall, the number of mortgage loan applications has been steadily increasing since 2010, but recent events caused a sharp decline in the numbers from 2021, even though the count of NAR members are on the rise.
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