You’ve likely noticed the fluctuating mortgage rates while watching the news recently. It’s easy to tune out when experts talk about fractions of a percentage, but these small differences can have a big impact.
When you’re looking at purchasing something as expensive as property, those changes can mean a monthly difference of hundreds of dollars, which could mean a drastic difference in the house for which someone might qualify. That’s why keeping an eye on these changing rates is important.
So what do these fluctuating rates mean for the housing market? Melissa Dittmann Tracey, real estate expert and contributing editor, summarizes the recent activity in a recent article at Realtor Magazine:
“Though mortgage rates inched up this week, they remain below 6.5%, Freddie Mac reported Thursday. The 30-year fixed-rate mortgage averaged 6.43%, up from 6.39% last week.
“But ‘with the rate of inflation decelerating, rates should gently decline over the course of 2023,’ says Sam Khater, Freddie Mac’s chief economist. ‘Incoming data suggest the housing market has stabilized from a sales and house price perspective. The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.’
“The National Association of Realtors is predicting that the 30-year fixed-rate mortgage will fall to 6% by the end of the year and to 5.6% in 2024.
“Buyers have shown sensitivity to movement in mortgage rates as they break their budgets to afford high home prices. But low inventory might prove an even bigger obstacle: The spring homebuying season is off to a slow start because buyers can’t find enough options, according to NAR data.
“Freddie Mac reports the following national averages with mortgage rates for the week ending April 27:
Thirty-year fixed-rate mortgages averaged 6.43%, up from last week’s 6.39% average. Last year at this time, 30-year rates averaged 5.1%. Fifteen-year fixed-rate mortgages averaged 5.71%, dropping from last week’s 5.76% average. A year ago, 15-year rates averaged 4.4%.”
When the market changes and mortgage rates are moving daily, it’s important to utilize the expertise of a Realtor while looking to buy or sell a property. Realtors have the tools available to make sure you get the most out of your investment, no matter what the current conditions might be. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service that is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines, including appraisal, commercial, industrial, land, multifamily, property management and residential. Affiliate members who represent related industries work alongside these Realtors, including mortgage lenders, home inspectors, title and closing services, pest inspection and control services and insurance providers.