Real Estate Tips By Ronnie Jordan-What Home buyers must know.
In the realm of real estate, the recent decision by the Federal Reserve to maintain its federal funds rate has sparked conversations about the potential impact on mortgage rates. For aspiring home buyers, the prospect of some stability in mortgage rates is a welcome development, though it doesn’t automatically translate into increased home affordability.
Following the Federal Reserve’s decision to hold its federal funds rate steady, the 30-year fixed-rate mortgage showed minimal change from the previous week. Despite this, mortgage rates have been steadily climbing, inching close to the 8% mark. Jessica Lautz, Deputy Chief Economist at the National Association of REALTORS®, sees this as a potential turning point, offering relief to both buyers and sellers in the real estate market.
Navigating the Currents of Mortgage Rates
However, the shadow of future rate hikes persists. Sam Khater, Freddie Mac’s Chief Economist, emphasizes that while the Federal Reserve chose not to raise interest rates this time, the possibility of a hike before year-end still looms. Geopolitical uncertainties and ambiguity surrounding monetary policy could impact the economic landscape and potentially hinder improvements in the housing market.
In response to these concerns, the National Association of REALTORS® and other major housing groups have reached out to Fed Chairman Jerome Powell, expressing worries that uncertainty around the Fed’s rate path is creating disruptions in the real estate market and may even invite a recession.
Current figures from Freddie Mac indicate that the 30-year fixed-rate mortgage averaged 7.76% this week, translating to a typical monthly mortgage payment of $2,290 for a single-family existing home at the median price of $399,200. However, these numbers vary significantly across different markets. For instance, in the West, where the median home price is $606,100, the monthly payment averages $3,477—considerably higher than the national average. Conversely, buyers in the Midwest, with a median home price of $293,300, enjoy a lower-than-average monthly payment of $1,693.
In this local market landscape, home buyers face diverse challenges, including stiff competition and limited inventory. Jessica Lautz emphasizes the importance of a REALTOR®, essential for guiding buyers through negotiations in this dynamic environment. As the real estate market continues to navigate uncertainties, staying informed and seeking professional advice remains pivotal for those looking to make a successful home bid.
Stay tuned to Real Estate Tips By Ronnie Jordan for more updates about the OKC Metro Real Estate Market.
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