They remain a little steep for a million-dollar starter home
Mortgage rates barely budged this week. Freddie Mac reports the average 30-year fixed-rate mortgage rate this week is 6.78%, up from 6.77% last week.
While the short-term trend has been a slow decline, mortgage rates remain a barrier for many buyers.
Mortgage rates essentially remained flat from last week but have decreased nearly half a percent from their peak earlier this year, said Sam Khater, Freddie Macs chief economist. Despite these lower rates, buyers continue to pause, as reflected in tumbling new and existing home sales data.
A rate of more than 6.5% is especially burdensome if the starter home you are considering has a list price of $1 million. Nationwide, the typical starter home is worth $196,611 but Zillow reports there are some markets where the price to get into the housing market is much higher.
Orphe Divounguy, a senior economist at Zillow, says $1 million is the norm for a starter home in hundreds of cities.
Good news ahead
"However, it's looking more and more like there will be some good news ahead for first-time buyers, Divounguy said. More homes are for sale, price cuts are on the rise, and buyers have a few more days to weigh their options as homes sit on the market."
Zillow found that exactly half of all states have at least one city with a typical starter home worth $1 million or more. Not surprisingly, 117 of those cities are in California.
While the average mortgage rate this week is 6.78%, you might find a better rate, depending on your location and credit score. ConsumerAffairs researchers analyzed offerings from 86 companies and picked the eight best.
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Posted: 2024-07-25 16:24:02