The hot topic every time real estate comes up in conversation lately is the issue of mortgage rates and the market. We don’t have a crystal ball, but we do watch the market and what’s happening with the rates.
The latest news is that it is about 5% cheaper to buy a house now than a week ago. That means home buyers are saving around $100 in monthly mortgage payments.
“Mortgage rates decreased for the second week in a row, as growing concerns over an economic slowdown and increased recessionary risks kept Treasury yields lower,” said MBA forecaster Joel Kan, in a statement.
Freddie Mac reports the following national averages with mortgage rates for the week ending July 7:
- 30-year fixed-rate mortgages:averaged 5.30%, with an average 0.8 point, dropping from last week’s 5.70% average. Last year at this time, 30-year rates averaged 2.90%.
- 15-year fixed-rate mortgages: averaged 4.45%, with an average 0.8 point, dropping from last week’s 4.83% average. A year ago, 15-year rates averaged 2.20%.
- 5-year hybrid adjustable-rate mortgages: averaged 4.19%, with an average 0.4 point, falling from last week’s 4.50% average. A year ago, 5-year ARMs averaged 2.52%.
There are definitely a lot of opinions about where the market is headed, but there is nothing set in stone.
What we do know is that the DFW market has cooled off some, but is still a hot market. Homes that were priced super high are now being reduced. We are seeing A LOT of “price improvements”, but that doesn’t reflect that the demand isn’t there. Those prices were overpriced to begin with, and now the market is forcing them to adjust their strategy.
The DFW population continues to grow steadily each year. The current population of the metroplex has already grown 1.42% since 2021. So the demand is still there. Inventory is growing at a slow pace, and prices are starting to level out. The market is returning to a more steady and stable state.
Yes, interest rates are higher that they’ve been in the past couple of years. However, let’s be REAL! 5-6% rates used to be considered awesome. It’s all about perspective. It’s still a great time to buy and sell.