With mortgage rates stabilizing and positive signals from the Fed, is now the time to act? Let’s talk about it.
📉 Mortgage Rates Starting to Fall
Mortgage rates are finally moving in a favorable direction for buyers. Rates have fallen for the fifth week in a row, bringing the average 30-year fixed rate to around 6.35%. While rates remain higher than historical lows, this trend is encouraging if you’re a buyer looking to step back into the market.
🏠 Home Prices Soften, But for How Long?
National home price growth slowed to an annual rate of 3.6% in July, offering buyers more negotiating power. However, with the dip in rates, demand is expected to pick up, which could put upward pressure on prices in the coming months.
💰 Affordability Reaches Its Best Level in Months
August saw the most favorable affordability conditions since February. This improvement is due to both declining mortgage rates and slowing home price growth. Buyers can now expect to pay $145 less per month on the average-priced home compared to three months ago.
Looking for a local expert?
Connect with a Morty loan officer to talk through your buying power today.
🔮 What’s Next?
While this market has shown us that it’s difficult to predict what will happen next, the current conditions indicate the Fed will likely cut rates following their next meeting. For those considering entering the market, the recent improvements in affordability, alongside stable home prices, offer a chance to act before the market becomes more competitive.
🛟 Be Prepared
Considering a home purchase? Find out your home budget using Morty’s Cost Explorer.
Have a home in mind? Get pre-approved fast, with no impact to your credit score.
Need advice? Connect with one of our local officers to discuss your personal needs and situation.
-Robert Heck, VP of Mortgage @ Morty
