Jessica Lautz
Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.
Content by Jessica Lautz
Facts: The average 30-year fixed mortgage rate from Freddie Mac fell to 6.08% this week from 6.09% last week. At 6.08%, with 20% down, a monthly mortgage payment is $1,935 on a home with a price of $400,000. With 10% down, the typical payment would be $2,177.
Positive: This is the lowest weekly average since September 2022. Interest rates are down 1.71% from October 2023. The savings on a $400,000 home would be $366 monthly and $4,392 annually. The mortgage interest rate one could receive this week is well below the historical average (dating to 1971) of 7.72%.
Negative: Mortgage rates are not likely to come down in a meaningful way for home buyers. While there could be minor reductions in mortgage interest rates, those waiting for further improvements in affordability could be priced out further as home prices continue to climb.
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