Instant Reaction: Mortgage Rates, August 24, 2023
Deputy Chief Economist and Vice President of Research
Mortgage rates jumped this week to 7.23% from 7.09% last week, the highest monthly mortgage payment since June 1, 2001, when they were 7.24%.
From June 1991 through May 2001, mortgage interest rates averaged 7.81%. Consumers may have felt comfortable taking on a mortgage in the 7% range. However, there’s a big difference between 22 years ago and today: home prices and inventory were more in line with wages and the population then. In June 2001, there were 2.11 million existing homes on the market. In data for July 2023, there were just 1.11 existing homes in the market.
The highest interest rate in 22 years translates into a monthly payment for the typical existing single-family home of $2,246 and a $1,948 payment for a condo. New home sales are on the rise while existing-home inventory is limited. However, the sales price is about $30,000 more than the typical existing home, which means a monthly mortgage payment of $2,379 for the typical new home. Until rates come down, this will hurt buyers’ opportunities to enter the market and the willingness of sellers to make a needed move.
Related Information, Click
Prices Are Dropping in this No body's market.
Interest rates are killing sales but people are still buying.
If interest rates drop to 6% it won't be all of a sudden.
As of July 2023 the inflation rate was 3.18%.
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People still have to buy and sell real estate, even dead
people need real estate in a no body's market!
What's For Sale Currently...
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What sold 7-26-23 to 8-26-23
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How we got into this madness, Click
435-753-4577 text
Homebased Realtors
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DON'T DO AN ADJUSTABLE RATE MORTGAGE UNLESS YOU HAVE A CRYSTAIL BALL
Home buyers may have to recalculate what they can afford now that rates are well into the 7% range. More home shoppers are being drawn to adjustable-rate mortgages, which tend to have a lower introductory interest rate. But rates for ARMs will reset in five or seven years. The share of mortgage applications for ARMs last week rose to 7.6%, the highest level in five months, the Mortgage Bankers Association reported Wednesday. READ MORE ON THIS, Click
If you have the ability to buy or you are thinking of ways to buy with owner financing, like the home I just helped with at
5% interest let's talk.
Deed restrictions are a must.
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