On the other hand, if it’s not urgent to buy a home soon, then you could benefit by waiting for a lower rate. Alternatively, you can put down more cash now to buy down your current rate. There will always be an opportunity to refinance at a lower rate when interest rates do drop. If you’ve found a home that you can comfortably afford, at a price you don’t expect to see in the near future, buying now might be wise. Your decision to buy a home should be based less on mortgage rates and more on your personal financial situation and the specifics of the house you are considering. With rates more than double their January 2022 level and housing prices still elevated, it’s tough to figure out if getting a mortgage now is a good plan, especially given predictions that rates might decline later this year. “Once the Fed’s rate increases are done, mortgage rates are poised to fall a little.” Tips For Home Shoppers: Should I Get A Mortgage Now? “The Fed has indicated there might be two more rate increases this year,” said. predicts the average mortgage rate will land at 6.1% by the end of 2023, lower than its previous estimate of 7.1%, according to a June 22 statement. Some economists are now projecting mortgage rates will drop further, partly because the Federal Reserve said it would slow the pace of its rate hikes going forward, after it announced a pause at its June 14 meeting. Mortgage Rates Projected To Drop Further this Year Freddie Mac is a government-sponsored enterprise that buys mortgages and packages them as mortgage-backed securities. However, inventory challenges persist as the number of existing homes for sale remains very low,” Sam Khater, chief economist at Freddie Mac, said in a news release announcing the survey results.įigures for the survey come from conventional mortgage applications submitted to lenders across the U.S. “Potential homebuyers have been watching rates closely and are waiting to come off the sidelines. As of June 22, the rate averaged 6.03%, a drop from 6.10% a week earlier but much higher than the 4.92% average a year earlier. The 15-year, fixed-rate mortgage shows a similar trend. Mortgage rates have continued their sluggish decline for a third consecutive week, but the housing market remains costly as interest rates are still hovering above 6%, according to the weekly survey from mortgage giant Freddie Mac.Īs of Thursday, June 22, the 30-year, fixed-rate mortgage averaged 6.67%, down from 6.69% the week before, the survey shows.
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