Economists' Outlook
Housing stats and analysis from NAR's research experts.
Facts: The average 30-year fixed mortgage rate from Freddie Mac decreased to 6.76%, down from 6.81% last week. At this rate, with a 20% down payment, the monthly mortgage payment amounts to $2,078 for a home priced at $400,000. With a 10% down payment, the typical payment would be $2,337.
Positive: While mortgage rates are elevated, home buyers have more negotiating power than they did over the last several years, with more inventory. Repeat buyers have reaped stacks of cash from housing equity, allowing for all-cash purchases and hefty downpayments, offsetting higher rates.
Negative: Mortgage applications eased this week. GDP eased, but it was a cloudy picture at best, as the import of goods increased. Justified or not, consumers can be reticent to make any large purchases, including a new home, when there is uncertainty in the air. Eyes will be on the job report tomorrow as steady employment means higher home sales.
Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.
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