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- Mortgage rates tumble to lowest level since October 2024 (foxbusiness.com)
Mortgage rates have dipped to their lowest point since October 2024, offering a glimmer of hope to prospective homebuyers. Freddie Mac’s Primary Mortgage Market Survey revealed that the average 30-year fixed mortgage rate dropped to 6.5% this week, down from 6.56% last week and the lowest since the 6.44% rate recorded on October 17, 2024. A year ago, the 30-year rate stood at 6.35%.
This positive trend has sparked optimism in the housing market. Sam Khater, Freddie Mac’s chief economist, noted the increasing opportunities for both new buyers and current homeowners looking to refinance. The share of mortgage applications for refinancing has reportedly climbed to almost 47%, its highest level since October.
The 15-year fixed mortgage rate also decreased, falling to 5.6% from last week’s 5.69%. This time last year, the 15-year rate averaged 5.47%.
Despite this good news, housing affordability remains a significant challenge. A recent Realtor.com report indicates that less than 30% of homes on the market are affordable for the typical American household.
The maximum affordable home price for a median-income household has dropped to $298,000, a considerable decrease from $325,000 in 2019. This signifies a nearly $30,000 decline in buying power since 2019, despite a 15.7% rise in median income.
Realtor.com Chief Economist Danielle Hale attributes this primarily to higher mortgage rates, which have diminished the purchasing power of the average American household. She observes that many buyers are being forced to reconsider their options, whether it involves seeking smaller homes, relocating to more affordable areas, or postponing homeownership altogether.
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- Mortgage rates tumble to lowest level since October 2024 (foxbusiness.com)