Mortgage Rates Finally Below 7%
The week ending December 14th, the 30-year fixed-rate home loan averaged 6.95% according to Freddie Mac. It seems mortgages rates will finally be seeing a wishful decrease bringing a much-desired relief in affordability for hopeful homebuyers.
Sam Khater, Freddie Mac’s chief economist, stated “continued decline of inflation with the FED’s expectations to lower the target rate in 2024 will most likely see a general cooling of the housing market”. In the most recent release of inflation data released Tuesday December 12th, showed inflation dropping .01% from October to November 2023 (3.2% down to 3.1%).
The expectation from many housing analysts is that homebuyers will be acting fast with the national median home prices falling from $441,000, June 2023, to $420,000 in November. This drop in the median price and sustained decrease in mortgage rates will result in an easing of the mortgage “lock-in” effect. Meaning, homeowners who bought with low original mortgage rates will be more willing to sell their homes, after seeing potential buyers come out of hiding.
Overall, we can expect a more active housing market with the combination of economic indicators and individuals/families looking to either buy or sell. Including the previously mentioned bounce in homeowners looking to refinance now with the loosening of mortgage rates, the Title Industry should see a correlating pop as well.