Searching for a 5.5% rate
Recently released March housing data shows exactly how much of a roller coaster homebuyers have been on so far this year. While existing home sales increased over 13% in February, the uptick in rates we saw last month resulted in a 2.4% decrease for March.
What about prices, you might ask? Well, the median existing home price did drop by .9% year-over-year in March to $375,000 which is actually the largest annual decline since 2012, according to the Wall Street Journal. This is a national figure, so price movements vary market to market, as we’ve noted.
A new study out last week showed that buyers are looking for mortgage rates of around 5.5% to bring them into the market. This may seem like a stretch given where rates sit (they were up .13% last week for an average of 6.39%, per Freddie Mac), but getting close may not be impossible. Depending on the type of loan you’re looking for and the amount you’re willing to pay upfront in the form of points, a range that includes 5.5% could be more within reach than some buyers realize. By using our rates tool and exploring options with different points and credits, you can see for yourself. What’s your magic rate number?
-Robert Heck, VP of Mortgage @ Morty
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In the news
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