O
n August 27, 2024, a "For Sale" sign was spotted outside a house in the Alamo Placita neighborhood of central Denver. This is according to an AP photo taken by David Zalubowski.
The average rate for a 30-year mortgage has decreased for the second week in a row, now standing at its lowest level in over a year. This is good news for potential homebuyers who are facing high home prices. The rate has dropped to 6.35% from 6.46% last week, according to mortgage buyer Freddie Mac. Compared to last year, the rate averaged 7.18%. The last time the rate was this low was on May 11, 2023.
In addition to this, borrowing costs on 15-year fixed-rate mortgages have also decreased this week. This is beneficial for homeowners who wish to refinance their home loan at a lower rate. The average rate has dropped to 5.51% from 5.62% last week. Compared to last year, it averaged 6.55%, as per Freddie Mac's statement.
The decrease in mortgage rates is attributed to expectations of a Fed rate cut, as per Freddie Mac's chief economist Sam Khater. He believes that rates will continue to decline, but potential homebuyers are still hesitant until they see further declines.
Signs of waning inflation and a cooling job market have raised expectations that the Federal Reserve will cut its benchmark interest rate next month for the first time in four years. Higher mortgage rates can add hundreds of dollars to borrowers' monthly costs, keeping many potential homebuyers on the sidelines and prolonging the nation's housing slump into its third year.
Sales of previously occupied U.S. homes are currently below last year's pace, although they ended a four-month slide in July. After reaching a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has mostly stayed around 7% this year - more than double what it was just three years ago. However, this month has seen the biggest downshift in more than a year.
In other news, Portland's oldest home, located on land ripe for development, is up for sale at $1.95 million. New rules are being implemented to make it harder for criminals to launder money by paying cash for homes. The star of 'This Old House' has passed away at the age of 70. Popular rental management software is under scrutiny as federal agencies and state attorneys general allege price-fixing. Home shoppers should be aware of new buyer's contracts.
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