Mortgage rates dipped for the second week straight, breathing some life into the housing market, according to Freddie Mac.
The average 30-year fixed-rate mortgage was 7.5% for the week ending Nov. 9, according to Freddie Mac’s latest Primary Mortgage Market Survey. That’s a decrease from the previous week when it averaged 7.76%. A year ago, the 30-year fixed-rate mortgage averaged 7.08%.
The average rate for a 15-year mortgage was 6.81%, down from 7.03% last week and up from 6.38% last year.
Mortgage rates had been aggressively climbing towards the 8% threshold in sync with 10-year treasury yields, which have also slowed. The dip in rates has helped boost mortgage activity, as evidenced by the 2.5% increase in total mortgage application volumes last week, compared with the previous week, according to the Mortgage Bankers Association’s (MBA) seasonally adjusted index. Applications to refinance a home loan increased 2% for the week and were 7% lower than one year ago.
Despite the more optimistic tone, housing activity continues to be hamstrung by affordability issues. The purchase index is still more than 20% behind last year’s pace, as many homebuyers remain on the sidelines until more for-sale inventory becomes available, according to MBA Vice President and Deputy Chief Economist Joel Kan.
SOURCE: FoxBusinessNews.com
A Silver Lining for 55+ Homebuyers & Homeowners
A Positive Shift
For many, securing a mortgage with favorable terms can mean the difference between their dream home and settling for less. Thankfully, recent trends have shown a positive shift in the mortgage market: dropping mortgage rates. It’s time to take advantage of the recent drop.
How Does the Mortgage Rate Change Affect Homebuyers?
1. Increased Affordability
For example, since rates have improved: A reduction in 30-year mortgage rates from 8.45% to 7.45% would save you $278 a month on a $400,000 home.
2. More Home Inventory Availability
Since the historic low inventory in 2022, the number of available homes on the market has rebounded.
3. Higher Purchasing Power
Lower interest rates mean homebuyers can qualify for larger loan amounts without increasing their monthly expenses. That home you thought was out of reach, could be an option today.
If you’re looking to become a homeowner, you could still find the best mortgage rates by shopping around. Let’s connect. To set up a FREE CONSULTATION, or to answer all your Real Estate questions, reach out to me anytime. Contact Debbie at 703.220.1600 / [email protected].
