The mortgage rates continued to speed up. (East)
There are good news for potential home customers: mortgage rates continued to train this week. In January, Rates hit 7.04%the highest level since last May. This week, however, the 30-year-old rates have fallen to 6.76% for a fixed rate mortgage, According to Freddie Mac.
“This week, mortgage rates have decreased to the lowest level in more than two months,” said Freddie Mac economist Sam Khater. “The fall of the mortgage rate, combined with modestly improvement of stocks, encouraging her sign that consumers buy a house on the market.”
Last week, the 30-year mortgage rate was on average 6.85%, so this week the fall is something significant. The rates for the 15-year mortgage also decreased from 6.04% to 5.94% for fixed rates this week.
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House prices go down in some areas
House prices are declining in many areas, although they are not yet close to the price before the pandemic. About 23% of the sellers reduced the prices of twists in January, Zillow found.
“House owners finally return to the market as the effects of ease of locking rates with time, but customers are still struggling with high monthly costs,” said the chief economist Zillow Skylar Olsen.
“The sellers are in a good position and are willing to achieve the price reduction to conclude the contract,” Olsen said. “Home capital is close to record heights, and the general economy and financial markets are surprisingly strong. The houses are sold faster than they did before the pandemic.”
Domestic values continue to increase by 44% compared to the pandemia, and prices have increased by 2.6% compared to last year. Despite the high prices of houses and stubborn customers, more sellers put their homes on the market because the effect of “locking the rate” begins to weaken.
New lists have increased in January nearly 12% compared to the year. Sellers look tired of waiting for prices to rot and list their homes in response to different life events. Zillow found that 78% of the sellers had influenced events such as a new job or a family change.
Many of these sellers are still gaining more than they originally listed their home. Nearly 25% of the homes sold in December last year was sold for more than the original inclusion price. This is more than 19% of homes before the pandemic.
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Renting is still more accessible than home in most places
Despite the increasing cost of renting, renting is still, and big, cheaper than possession of the house, according to a Realtor.com report.
Pittsburgh and Detroit are the only two metro with lower average listing prices, which are the two most favorable cities to buy. The average price in Pittsburgh is $ 229,700 and is $ 239,950 in Detroit. The rent increases in both of these cities, so buying a home can be cheaper in the long run.
“For most Americans, owning a home is still a large part of the American dream, but the lower monthly rental costs on all except the two of the 50 largest markets are crucial,” said the main economist Realtor.com Danielle Hale. “This relative cost advantage is one of the reasons we expect to increase the households of renters and the fall of ownership rates over the 2025 homes.”
Renting is perhaps cheaper than possession, but the costs of rent are still high, although the rent technically falling in general throughout the country. The costs of rent in January 2025 are lower than in 2024 and 2023, but still exceed the rental prices from January 2020. For $ 257, Realtor.com determined.
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FHFA announces higher limit limit for the mortgage for 2025.
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