H
omebuyers continue to face affordability challenges due to high interest rates. Despite the Federal Reserve's recent rate cut, mortgage rates have remained steady at around 6.78% for a 30-year fixed-rate loan.

    This has significant implications for prospective buyers, particularly first-time homebuyers who are already struggling to enter the market. According to the National Association of REALTORS, just 24% of home sales this year were made by first-time buyers, down from the typical 40%.

    At current rates, a $400,000 home with a 20% down payment would require a monthly mortgage payment of around $2,082. With a 10% down payment, that number jumps to $2,342.

    While some experts suggest that rates may moderate in the coming years, they are not directly tied to the Federal Reserve's benchmark rate. Instead, they are influenced by the 10-year Treasury yield, which has been increasing lately.

    Real estate professionals often advise buyers to refinance their mortgages if rates drop lower, but the latest housing inventory gains could provide more options for homebuyers. Historically, late fall and winter months have been a good time for first-time buyers to enter the market as families tend to bow out of their search during the early school year.

    Freddie Mac reports that 30-year fixed-rate mortgages averaged 6.78% this week, down slightly from last week's average but still higher than last year's rate of 7.44%.