![]() ![]() Many homeowners who locked in a mortgage rate in 20, when rates averaged below 3%, are reluctant to sell now that rates have since doubled, which is limiting the inventory of homes on the market. “Limited inventory means that sellers don’t really need to concede that much,” said Niko Voutsinas, a Redfin agent in Chicago. Individual homeowners eager to sell have also enticed buyers with such an offer, though that’s not as common now as it was last fall when the average rate on a 30-year mortgage climbed above 7%. Many homebuilders have offered to cover these costs for buyers to help get a deal done. In exchange, buyers pay fees as part of their closing costs to cover the rate buydown. One way buyers have dealt with higher rates over the past year is with a mortgage rate buydown, which lowers the rate on a home loan for a few years or for the life of the loan, thereby reducing a homebuyer’s overall borrowing costs. “We can always refinance when the rates go down again,” she said, adding she’s also looking for a seller who will offer to buy down the rate on her mortgage. While she regrets missing out on the ultra-low mortgage rates two years ago, the business center manager isn’t stressing over where rates are now. “I thought, before (rates) go any higher, I might as well jump in and try to find a place,” said Cafarella, 55. The latest pullback in mortgage rates is perfect timing for Cheryl Cafarella, who recently began shopping for condos priced between $150,000 to $170,000 in Chicago. ![]() homes fell 22% in the 12 months ended in March, marking eight straight months of annual sales declines of 20% or more, according to the National Association of Realtors. home sales this spring homebuying season. The elevated rates combined with a stubbornly low inventory of homes on the market have weighed on U.S. ![]() High rates can add hundreds of dollars a month in costs for homebuyers on top of already high home prices. This should bode well for the trajectory of mortgage rates over the long-term.” “While inflation remains elevated, its rate of growth has moderated and is expected to decelerate over the remainder of 2023. “This week’s decrease continues a recent sideways trend in mortgage rates, which is a welcome departure from the record increases of last year,” said Sam Khater, Freddie Mac’s chief economist. The average benchmark rate has now edged lower seven of the last nine weeks since reaching a high for this year of 6.73% in early March. Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan inched down to 6.35% from 6.39% last week. home loan is down to the lowest level in five weeks, welcome news for house hunters facing a market constrained by persistently high prices and a near-historic low number of homes for sale. LOS ANGELES – The average rate on a long-term U.S. ![]()
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