The mortgage rate decrease will be a happy surprise for home investors, as rates were expected to continue to climb along with Federal interest rates.
The high-priced home market has been a concern for economists in recent weeks. With rising home prices and interest rates, 2018 has been one of the most expensive years in recent memory to purchase a home.
The latest news will be a relief for anybody who is thinking about buying, as it has just been reported that the average 30-Year fixed mortgage rate dropped from 4.60% earlier in the month, to 4.53% today. Although the change may seem small at just 7 points, it can represent a significant amount of interest over 30 years.
Buyers looking for a shorter 15-Year mortgage will enjoy even better rates, with the average now 4.01%, compared to 4.05% earlier this month.
Low Mortgage Rates Could Boost Home Sales
High prices and interest rates have contributed to a sluggish market throughout the last quarter. Lower rates should increase the activity in the home market for the end of this month.
According to some analysts, the recent slow market could have a knock-on effect to the detriment of smaller communities. Less movement of families between different areas means that some of the smaller labor markets are having difficulty filling positions. Total sales numbers have declined this year, which has led to only a 10% relocation rate of qualified job seekers around the country. This is a significant drop compared to the average of 19% over the last ten years.
Real estate agents, moving companies, utility companies, and even home goods suppliers can all benefit from a healthy home market. While it is not clear how long the decline in rates will last, it could at least breathe some life into the market as we approach the end of the year.
Buyers and Sellers Have a Window of Opportunity
Sellers should consider increasing their marketing efforts during this time. If you have a home on the market or if you are ready to go to market, then now is the time to talk with your realtor.
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