Yes, Mortgage Interest Rates have dropped!
In the News:
Mortgage News Daily 12/14/23 One Of The Biggest 2-Day Drops in Rates in Decades
Today’s headline speaks for itself: one of the biggest 2-day drops in rates in decades. Simply put, over the past 48 hours, mortgage rates have moved lower by a larger amount than almost any other time in our records. There was a similar episode in November 2022 and only one other episode in March 2020 (which we don’t really count as “real” due to the once-in-a-lifetime market dynamics in play at the onset of the pandemic). Before that, we don’t have anything else remotely close going back to start of our intraday record-keeping in 2007.
Freddie Mac 12/14/23 Mortgage Rates Drop Below Seven Percent
Potential homebuyers received welcome news this week as mortgage rates dropped below seven percent for the first time since August. Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal fund’s target rate next year, there will likely be a gradual thawing of the housing market in the new year.
Mortgage News Daily 12/13/23 Rates Plummet to Lowest Levels Since May 2023 After Fed Announcement
Today brought the scheduled Fed policy announcement that we’ve been waiting for and mortgage rates plummeted as a result. So does that mean the Fed cut rates? No… The Fed kept its policy rate perfectly unchanged, as expected.
It was unlikely that the Fed would have said anything significant in the actual policy announcement itself (although they did add a single word that hinted at the prevailing rate hike cycle being over). Instead, today’s focus was on the dot plot which the Fed uses to convey its outlook for the Fed Funds Rate 4 times per year.
Freddie Mac 12/7/23 Nearing Seven Percent, Mortgage Rates Continue to Decrease.
The 30-year fixed-rate mortgage averaged nearly 7 percent this week, down from nearly 7.80 percent just six weeks ago. When rates began to rapidly drop, purchase applications rebounded initially, but this improvement in demand diminished in the last week. Although these lower rates remain a welcome relief, it is clear they will have to further drop to more consistently reinvigorate demand.
Housing Wire 12/7/23 Mortgage rates are (finally) back at 7%
Mortgage rates continued their downward trajectory this week as the 10-year Treasury yield dropped below4.2% for the first time since September, according to new data from Freddie Mac
InmanNews 12/5/23 How low can they go? Mortgage rates back under 7% this week
Mortgage rates continue to retreat from 2023 highs, but homebuyer demand for purchase loans remained flat last week, as for-sale inventories are still tight in many markets and prices remain out of reach of some would-be buyers.
InmanNews 11/30/23 Homebuyers seizing the day as mortgage rates continue to slide
Mortgage rates continue to retreat from their 2023 highs and would-be homebuyers are seizing the day, with applications for purchase loans surging by a seasonally adjusted 5 percent last week from the week before, the Mortgage Bankers Association (MBA) reported Wednesday.
Financing the Home Purchase: National Association of REALTORS® | 2023 Profile of Home Buyers and Sellers
* Eighty percent of buyers financed their home purchase, up slightly from 78 percent last year, but still down from 87 percent in the 2021 report.
* The typical down payment for first-time buyers was eight percent, the highest share since 1997 when the typical down payment was 9% for first-time buyers. The typical down payment for repeat buyers was 19%, which is the highest share since 2005 when the typical down payment was 21%.
Yes, you can use a Calculator to obtain an estimated mortgage payment. Yes, you can use your Cell Phone or Computer and use a Mortgage Payment App to do it. Your Choice!
Take a look at estimating a Monthly Mortgage Payment using a 8% Down Payment as noted above from the National Association of REALTORS with Interest Rates at current interest rate 6.75% compared to the rate a week or so back of 7.75%.
Mortgage Payment Estimates are Principal and Interest Calculations Only: They do not include Monthly Real Estate taxes, Homeowner’s Insurance, and Private Mortgage Insurance(PMI), if required. The Actual Mortgage Interest Rate will vary from Lender to Lender, will vary due to the Credit Score of the Borrower, the type Mortgage, and other factors. Consult a REALTOR and or Mortgage Professional to obtain Current Mortgage Interest Rates and Monthly Mortgage payment estimates.
Yes, mortgage interest rates have dropped. And yes, monthly mortgage payments on a home purchase will be lower! And yes it is very possible that there will be Mortgage Lenders offering lower interest rates than noted above. Just look at the Mortgage Interest Chart on the right column above.
New Hanover County, NC(November, YTD, Cape Fear Realtors, NC Regional MLS)$453,900
-Down Payment(8%): $36,400; Mortgage Amount: $417,500
– $287.61.18 Savings 7.75% $2,989.30 versus 6.75% $2,709.57
Wilmington, NC(November, YTD, Cape Fear Realtors, NC Regional MLS) $455,000
– Down Payment(8%): $36,400; Mortgage Amount: $418,600
– $280.47 Savings 7.75% $2,997.18 versus 6.75% $2,716.71
28411 Zip Code(November, YTD, Cape Fear Realtors, NC Regional MLS) $490,000
– Down Payment(8%): $39,200; Mortgage Amount: $450,800
– $302.04 Savings 7.75% $3,227.73 versus 6.75% $2,925.69
A pleasing drop in Mortgage interest Rates, and yet a little surprising in the extent they have dropped. And the benefit to Home Buyers?
Assuming a Buyer was comfortable and qualified for the mortgage payment of $3,227 per month as noted just above at 7.75% in the 28411 Zip code, the lower interest rate of 6.75% would provide the ability of increasing the price range and increasing the mortgage amount by an additional $43,000 which would result in a similar mortgage payment of approximately $3,224. Instead of looking at properties in the $490,000 purchase range, they could increase the price range to $533,0000 plus or minus. Take note that increased mortgage amount and price may be slightly different due to a slight change in the down payment, real estate taxes and perhaps interest rate.
Again, Consult a REALTOR and or Mortgage Professional to obtain Current Mortgage Interest Rates and Monthly Mortgage payment estimates.
The above article was prepared by David Fialk, REALTOR Emeritus, Licensed Real Estate Broker in North Carolina (Intracoastal Realty, Wilmington 28411) and a Broker-Salesperson in New Jersey (Coldwell Banker Residential Brokerage, Metuchen 08840) who has helped more than 1800 Families Move across Town… Throughout the State… and Across the Country!
Are you planning on purchasing real estate? Thinking of selling your home? For real estate information “You Can Rely On, Contact the REALTOR You Can Rely On”.
David can be reached via email or by phone at 910-859-0200 or aww.DavidFialk.com.
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