Mortgage rates have finally started trending lower. The Federal Reserve has begun lowering short-term interest rates, and Wall Street expects one more rate cut before the end of the year.
“Despite just a modest drop in rates, consumers clearly have responded as purchase demand has noticeably improved,” said Sam Khater, chief economist for Freddie Mac.
No doubt, there is a massive, bridled demand of anxious homebuyers waiting to make a move. When considering rates, home inventory, and the rising costs of houses — is now a good time to buy a house?
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Read more: Is it a buyer’s market or seller’s market? How to tell the difference.
One of the first considerations for would-be home buyers is likely to be mortgage rates.
Obviously, we are not in the glory days of sub-3% home loan rates. However, mortgage rates are still below their 52-year historical average. Based on data collected by Freddie Mac, the 30-year mortgage rate has averaged 7.72% since April 1971.
If it makes you feel any better, the highest mortgage rate on record was 18.63% in October 1981. However, with the Fed continuing a cycle of lower interest rates — with another quarter-point cut on Nov. 7 — there is a hint of optimism in the air.
Take action: Use a mortgage calculator to determine the monthly payment you can afford. You can then find the home price, down payment, credit score, type of home loan, and mortgage interest rate to get you to your home-buying goal.
Read more: How…
