Mortgage Rates Have Dropped for the Past 5 Weeks

By
Real Estate Broker/Owner with Bend Premier Real Estate 200009031

Will Mortgage Rates Continue Their Downward Trajectory?

For the past five weeks, mortgage interest rates have dropped, returning to figures that haven't been seen since August. Any relief from the high rates recently experienced is welcome. With each 1% reduction in mortgage rates, it roughly reduces the monthly mortgage payment by 10%. The chart below shows how purchasing power is impacted by mortgage rates.

Mortgage Buying Purchasing Power

Home Buyers Have More Options With Lower Interest Rates

When potential home sellers have great mortgage interest rates, they hesitate to list, even when a different home may be a better option for them at this time in their lives. When the financed cost of a new home would make their monthly payment significantly more, the benefit of a different living arrangement is offset by the monthly cost for these would-be sellers. This has led to a lack of inventory, keeping the price of current listings high. Lower interest rates would greatly benefit the real estate market by leading to more listings with more options for buyers. And those buyers who need to finance would benefit by being better able to afford their new home.

Mortgage Rates 113023

Original blog can be read at Bend Premier Real Estate.

 

Comments (5)

Tracy Lee Parker
RE/MAX DFW Associates - Royse City, TX
Buy*Sell*Rent

This is good news ! Hope they keep dropping! Buyers need a break in today's economy for sure! 

Dec 05, 2023 02:25 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Let's hope, it will continue dropping down so we have our buyers back. I hope, it will go in the area 5-6% next year. 

Dec 05, 2023 09:10 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Lynnea. Remember the early 70's when rates were in the 6.75 to 7.5% range on a 29 year amortization with the payment of 3 points. The average buyer put 20% down unless they went with FHA or VA. It was before PMI and the ability to put 10 or 15% down (eventually 5%). Savings & Loans paid 5% for passbook savings and up to 7% for certificates of deposits. All was good. Then the government wanted to help and the world went to hell for years. Enjoy your day. 

Dec 06, 2023 04:35 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Lynnea... hopefully these rate drops will continue and encourage some sellers to list their homes.

Dec 06, 2023 06:41 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lynnea  and thank you for the great information in your blog that you are sharing with us today.  Hope you have lots of plans for today!

 

Dec 06, 2023 08:38 AM