High interest rates are beginning to affect home sales and prices
of ConsumerAffairs
Potential buyers who have been waiting for home prices and mortgage rates to ease a bit are being rewarded. A report by real estate broker Redfin shows home prices are falling in some of the most expensive markets. At the same time, Freddie Mac reports the average 30-year fixed-rate mortgage (FRM) has dipped back below 7%.
Mortgage rates retreated this week given incoming data showing slower growth, said Sam Khater, Freddie Macs Chief Economist. Rates are just shy of 7%, and we expect them to modestly decline over the remainder of 2024. If a potential buyer is looking to buy a home this year, waiting for lower rates may result in small savings, but shopping around for the best rate remains tremendously beneficial.
Current rates
-
The 30-year FRM averaged 6.99%as of June 6, 2024, down from last week when it averaged 7.03%. A year ago at this time, the 30-year FRM averaged 6.71%.
-
The 15-year FRM averaged 6.29%, down from last week when it averaged 6.36%. A year ago at this time, the 15-year FRM averaged 6.07%.
Home sales stall
Redfin reports that home-sale prices are declining year over year in four major U.S. metros, three of them in Texas. The average price in Austin is down 2.9%, San Antonios average price is down 1.2%) while home prices in Fort Worth are also 1.2% lower.
Buyers in Portland, Ore., are also seeing slight relief with the average sale price dipping 0.9%. The last time prices fell in four or more metros was in January.
Redfin says some listings are growing stale because high mortgage rates and housing costs are causing would-be buyers to back off. The weekly average mortgage rate rose back above 7% last week, pushing the median U.S. monthly housing payment to a near-record-high of $2,838.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-06-06 16:52:21
