Mortgage rates fall to 10‑month low, offering relief for Salem buyers
Redfin Real Estate economists say the recent dip in mortgage rates gives serious house hunters a window of opportunity to lock in a lower monthly housing payment.
The daily average mortgage rate dropped to 6.57% on August 4th – the lowest level in 10 months. That’s down from a peak of 7.08% in May, giving buyers some relief after months of higher rates.
In Salem, where the median sale price is $453,333, the recent rate drop translates to hundreds of dollars in savings. The monthly mortgage payment on a home at that price is now $3,114 with a 6.57% mortgage rate, compared to $3,245 back in mid‑May when rates were above 7% – a difference of $131 a month and $47,172 over the lifetime of the mortgage.
Why did rates fall?
Mortgage rates fell following a weaker-than-expected July jobs report. The U.S. added fewer jobs than anticipated, and the unemployment rate ticked up, which improved the chances of the Fed cutting interest rates in September. Mortgage rates fell in anticipation of a rate cut next month.
What buyers and sellers should know
“This dip in mortgage rates gives house hunters a window of opportunity to buy before summer ends,” said Daryl Fairweather, Redfin’s chief economist. “While housing costs are still fairly high, the recent decline in rates boosts purchasing power and improves overall homebuying conditions. Combined with the surplus of homes for sale on the market, serious buyers may want to jump in sooner rather than later.”…