Instant Reaction: Mortgage Rates Drop

Instant Reaction: Mortgage Rates Drop

Home buyers should be pleased with the continuing drop in mortgage interest rates this week. If they can find a home, they can lock in a mortgage interest rate of 6.60% this week, down from 6.66% last week. This is the lowest mortgage interest rate in eight months (May 2023 mortgage interest rates were 6.57%). The historical norm for mortgage interest rates since 1971 is 7.74%.

For a $400,000 home, the typical mortgage payment with a 20% down payment for a 6.6% mortgage interest rate would be $2,044. This is a monthly savings of $257 compared to when mortgage interest rates were at their recent high point in October 2023.

For potential home buyers, winter is often a time to set financial goals for the year ahead. If a home purchase is a financial goal on the horizon, this is the time to work on cleaning up finances and finding a mortgage broker and a REALTOR® to help with that pursuit. Home buyers, especially first-time buyers, can benefit from researching FHA, VA loans, and low down payment programs. These programs are often under home buyers' radars and can put homeownership within reach.

If you are interested in selling real estate, please allow Target Auction Company the opportunity to detail the benefits of our auction platform and provide you with a free consultation. We can offer the information and advice needed to make a sound decision regarding the sale of your property. We can be reached by email, at 1-800-476-3939 or visit us at www.TargetAuction.com.

Date: January 18.2024 / Author: Jessica Lautz

https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-january-18-2024