Interest Rates are Finally Dropping
Although Optimal Blue data lags by a day, lender data collected by Mortgage News Daily showed rates for 30-year fixed-rate loans coming down by an almost unheard-of 22 basis points Friday, to 6.40 percent.
To put things in perspective on a 500K loan amount the difference of rates July 23rd and current is a swing of $200 A Month on a 30 year note!
That means mortgage rates were hitting new 2024 lows Friday.
Brian D. Luke, head of commodities, real and digital assets at S&P Global.
Mr. Luke observes that even if appreciation slows, home prices are likely to continue climbing.
"The waiting game for the possibility of favorable changes in lending rates continues to be costly for potential buyers as home prices march forward," he warns.
Barbara Corcoran can always be counted on to tell it like it is.
She mentions that the inventory shortage is keeping home prices elevated, and if interest rates come down another point by year end, home prices could “go through the roof” because of the buyers that will flood the market.
“I think everybody and their mother and their in-laws is going to come out looking for a new house and the competition is going to be so fierce that house prices will have to go up.”
If buyers want to avoid paying more, Corcoran advised, they should get out into the market now.
"You can't refinance your way out of a high price"
If you have any questions or need help navigating the market, reach out to me, Tom Driemeyer 970-389-6123