Due to recent developments in the banking sector, mortgage rates fell this week. Following the trend of the 10-year Treasury yield, the average rate on a 30-year fixed mortgage dropped to 6.60% from 6.73%. However, rates may decrease even further in the coming weeks depending on reactions in the financial market and the outcome of the Fed’s meeting next week.
However, this rate drop was enough to make homebuying affordable again for many Americans. At today’s rate, many can afford to buy a median-priced home since they need to spend less than 25% of their gross income for a monthly mortgage payment. If rates fall further to 6%, buyers will be able to purchase the median-priced home by putting down 14%, which was the median down payment of buyers in 2022.
Do you need help navigating a mortgage application and getting pre-qualified? Please reach out and I will help you figure out where to start: 540-598-1267