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- Mortgage rates fall for 4th straight week, lowest since early May (foxbusiness.com)
Mortgage rates have dipped for a fourth straight week, hitting their lowest point since early May. According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on a 30-year fixed mortgage dropped to 6.77%, down from 6.81% last week and 6.86% a year ago.
The 15-year fixed mortgage also saw a decrease, falling to 5.89% from 5.96% last week. This time last year, the 15-year rate averaged 6.16%.
Sam Khater, Freddie Mac’s chief economist, noted the stability of mortgage rates, which have stayed within a narrow 15-basis point range since mid-April. He added that while home sales remain low, the resulting increase in available inventory offers potential buyers a broader selection.
Despite this positive news, affordability remains a significant hurdle for many prospective homeowners. A recent report indicates that only three of the top 50 U.S. metro areas allow households earning the median income to purchase a home without exceeding the recommended 30% income-to-mortgage-payment threshold.
Realtor.com identified these metro areas as Pittsburgh, Pennsylvania; Detroit-Warren-Dearborn, Michigan; and St. Louis, Missouri.
The report considered a standard 20% down payment, May’s average mortgage rate of 6.82%, taxes, and insurance. Median household incomes in these cities were reported as $72,935, $72,493, and $79,869, respectively.
Nationally, Realtor.com found that a household would need approximately 44.6% of their income to afford a median-priced home. Danielle Hale, Realtor.com’s chief economist, acknowledged the increasing difficulty of homeownership, stating that while earnings have risen, homebuying costs have outpaced them, making affordability a challenge in many markets.
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- Mortgage rates fall for 4th straight week, lowest since early May (foxbusiness.com)