Hope Leitner, Realtor®, CRS

  Mortgage rates   have hit their lowest point in over a year and a half. And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment. Even a small decline in rates could help you get a better monthly payment than you would expect on your next home. And the drop that’s happened recently isn’t small. As Sam Khater, Chief Economist at  Freddie Mac ,  says : “Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.” But if you want to see it to really believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment. The chart below shows what a  monthly payment  (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate high), versus what it could look like if you buy a home now ( see below ): Going from  7.5%  just a few months ago to the low 6s has a big impact on your bottom line. In just a few mo

  You won’t find anyone who’s going to argue that  mortgage rates  have had a big impact on  housing affordability  over the past couple of years. But there is hope on the horizon. Rates have actually started to come down. And, recently they hit the  lowest point  we’ve seen in 2024,  according  to  Freddie Mac  ( see graph below ): And if you’re thinking about  buying a home , that may leave you wondering: how much lower are they going to go? Here’s some information that can help you know what to expect. Expert Projections for Mortgage Rates Experts say the overall downward trend should continue as long as inflation and the  economy  keeps cooling. But as new reports come out on those key indicators, there’s going to be  some volatility  here and there. What you need to remember is it’s not wise to let those blips distract you from the larger trend. Rates are still down roughly a  full percentage point  from the recent peak compared to May. And the general consensus is that rates in t

  Chances are you’re hearing a lot about  mortgage rates  right now. You may even see some headlines talking about last week’s  Federal Reserve  (the Fed) meeting and what it means for rates. But the Fed doesn’t determine mortgage rates, even if the headlines make it sound like they do. The truth is,  mortgage rates  are impacted by a  lot of factors : geo-political uncertainty,  inflation  and the economy, and more. And trying to pin down when all those factors will line up enough for rates to come down is tricky. That’s why it’s generally not worth it to try to  time the market . There’s too much at play that you can’t control. The best thing you can do is control the controllables.   And when it comes to rates, here’s what you can influence to make your moving plans a reality.   Your Credit Score Credit scores can play a big role in your mortgage rate. As an article from CNET explains: “ You can’t control the economic factors influencing interest rates.   But you can get the best ra

  Should I Wait for Mortgage Rates To Come Down Before I Move? If you’ve got  a move  on your mind, you may be wondering whether you should wait to sell until  mortgage rates  come down before you spring into action. Here’s some information that could help answer that question for you. In the housing market, there’s a longstanding relationship between mortgage rates and buyer demand. Typically, the higher rates are, you’ll see lower buyer demand. That’s because some people who want to move will be hesitant to take on a higher mortgage rate for their next home. So, they decide to wait it out and put their plans on hold. But when rates start to come down, things change. It goes from limited or weak demand to good or strong demand. That’s because a big portion of the buyers who sat on the sidelines when rates were higher are going to jump back in and make their moves happen. The  graph below  helps give you a visual of how this relationship works and where we are today:   As Lisa Sturteva

  If one of the goals on your list is  selling your house  and  making a move  this year, you’re likely juggling a mix of excitement about what’s ahead and feeling a little sentimental about your current home. A great way to balance those emotions and make sure you’re confident in your decision is to keep these three best practices in mind when you’re  ready to sell . 1. Price Your Home Right The  housing market  shifted in 2023 as  mortgage rates  rose and  home price appreciation  started to  normalize  once again. As a seller, you still need to recognize how important it is to price your house appropriately based on where the market is today.  Hannah Jones, Economic Research Analyst for  Realtor.com ,  explains : “Sellers need to become familiar with their local market and work closely with a local agent to make sure their listing is attractive to buyers. Buyers feeling the pressure of affordability are likely to be pickier, so  a well-priced, well-maintained home is the ticket to d