Mortgage Rates Fall to nearly a 6-month LOW
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- Опубліковано 8 вер 2024
- BIG NEWS! Average 30-year fixed mortgage rates fell to nearly a 6-month LOW on July 15, 2024 and have been decreasing for the majority of July after better than expected inflation data came in as well as signs the labor market may be cooling.
In today’s video, I’ll explain how this is impacting homebuyers and when the Federal Reserve is expected to start cutting interest rates this year. I also have an update regarding U.S. pending home sales (i.e. a future indicator of closed home sales in the coming months).
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To give you a quick mortgage interest rates update, according to the Mortgage News Daily the average 30 yr fixed rate mortgage is around 6.8% for the current mortgage rates (at the time of filming this video for those with excellent credit).
Comment below: what’s your housing market forecast? Do you think a housing crash will happen or are your housing market predictions that the real estate market and home prices will continue to surge?
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Builders are offering 5% interest rates and demand is at an all time low. Its not the rates that are the issues its the super high pricing.
Thank you for sharing your opinion on this. Much appreciated.
They added the buy down price to the sale price. Like you Most new build buyers do not know about it.
Maybe just maybe most people don't want to live in a new development an hour+ outside of the city center. 🤔
Lower rates rather than home prices would have a huge impact. I think people are underestimating that. Take a $430k townhome, average here in Springfield va, at 6.8 % it's 2803, 5% would be 2308. Almost 500 less.
Now if that home went up 30k, but still 5% it's 2469.
Home prices certainly hurt, but rates can make a huge difference in comparison IMO.
@@user-oy5wk6sg5fMaybe that’s the case for where you live in California and a few other over populated states, but not for the rest of the country. I for instance would rather live further away from the city. I work within the city limits and drive about 30 minutes to and from work, but you couldn’t pay me to live there.
Thanks Jason. Home prices matter most. The assumption that one can buy "a 400,000+ home" is mute because the home is a $300,000 home that now is priced at $400,000. It would be correct if prices made historical sense, not the case right now...
realtors LOVE higher commissions so higher prices are never a concern with them
Agree that prices are the real issue. Homes around here are 100-150k more than just 4 years ago and as far as I can tell no actual upgrades have happened. I might just be screwed because on principle alone I can’t pay $100,000 over what I know the home is actually worth.
People are also asking way above their assessments in my market and houses are starting to sit or super price drop. My husband and I chose to sell a house that was 100% paid off and put our money in a money market. Planning to buy in the next year but not in a hurry. Our area is super slowing down - lots of listings and not lots of sales.
@@aliciahernandez6203 not true. Realtors like putting deals together and helping people with their real estate goals. Low amount of sales is a big issue for anyone in the industry. I think many would love to see a balanced normal market, myself included.
I agree, home prices matter most since you can always refinance later. The only homes priced at 300k and below in Tucson are mostly crap purchased pre-pandemic at half that.
It's sick how we look at what we can afford as opposed to what is the value of what we are buying!
It's sick that people ignored affordability because they could refinance the house higher than what it is worth, and they will feel entitled to a bailout.
Now show real borrowers rates. Not perfect credit, etc, the real borrower for an "affordable" existing house, like the one I have listed. I worry the housing fad is over. Market is completely dead!
Affordability is still a big problem :/
Did you just call housing a "fad"?
Wow. 🙄
Even for the perfect score it’s much higher than what they promote
@mohammadrawidawoodzada2625 Maybe pick up a dictionary and look up the word "average".
@@user-oy5wk6sg5f When it’s bad for a person with perfect score then it’s bad for everyone and the average of all bad is still a bad. There is much more about the average than just grabbing a dictionary. If you wanna learn more on how the average works, let me know so I can provide with some good materials
It's dumb to buy right now. I don't care if it's 0%. My buddy has a 2.1. He has gone through his 401k, got a roommate to help him pay the mortgage, took out a second mortgage to pay off debt, and now moved his mom in and going through the money she got selling her home. He will eventually fold.
It is not dumb to buy. It was just dumb for him to buy
It is not dumb to buy if rates is at 0 percent…
@@iishyxvietxboyii1 You sound like my buddy that I just mentioned. He always buys a new truck for 0% interest rate. No concern about the price. Same thing is going on with the housing market. It's pretty much frozen but you still get those few who will buy anything as long as they can get the loan.
@@anniealexander9616 Okay… how are you certain prices will come down? You have a black crystal ball? You’d be dumb if you don’t take 0 interest now.
@@iishyxvietxboyii1 Could you buy at 0% if the lowest price house was $8,000,000?
Because that’s where it’s headed.
still way out of range of 4-5% that most people can afford
Yes we still have an affordability issue in the US :/
The prices are being reduced, but not enough for affordability to match buyers who are interested. The rate is very important. However, if that was the most important factor, incentives and rate buy downs would spark more sales.
It's like when gas prices were below $3 a gallon and then shoots to $5 and then drops yo $4.75 all within 3 years Your supposed to think Your getting a deal.
@@robertjones2282 Exactly!!
@@robertjones2282 it is a deal if you compare it to $5.
Anyone who wants the FED to cut rates wants prices to stay high.
Except historically, when the Fed cuts rates it does nothing but herald in a recession. Good luck keeping prices high with mass unemployment.
Except historically, when the Fed cuts rates it does nothing but herald in a rec///ess////ion. Good luck keeping prices high with mass un/////employment.
Government want those big property tax $$$.
@@CaptainCaveman1170Home prices have risen or been at worst flat during every recession going back nearly 100 years.
@@user-oy5wk6sg5f Except that you are excluding 2008 and before then the bubbles were not pronounced. Houses did not decline significantly in the 1930s because there was not a bubble. And prices would have declined in the early 1980s were it not for the ability to put your wife to work to cover the mortgage. People don't have that relief valve anymore.
I have been in favor of a recession instead of hyperinflation.
With the Fed leaning towards rate cuts and firing up the printing machines it looks like it may be hyperinflation. Bummer...
Houses too high regardless and property taxes too high that won’t come down when price drops
If interest rate drops, house price is going off the roof. I don’t see a house crash like people hope for. Demand will go up and people will over bid for a good house and great school district
By my Dumb math….ITS TIME TO GET NERDY!😂Good morning spreadsheet king Jason👍
Thank you Steve and Good morning!
In regards to housing demand.
I think we will see minimal buyer demand as pricing still remains an issue.
However, there is a large group of investors and individual buyers waiting on the sideline for a bargain.
Time will tell
Home prices 📈
The market in my neighborhood is definitely a lot different right now compared to what has been happening in the past.
More inventory, activity is definitely slowing, but even though the number of sold houses is less, the houses that are selling, most are all going for over asking.
There was 5 sold sfh houses this week in my zipcode, and all of them went for over asking.
It seems the people with money are all fighting over the same top houses that are in the best condition.
The bottom tier junk is selling to flippers and the middle/fair condition are sitting since the sellers aren’t reducing prices.
The housing market is still for the top 10-15%, and unless sellers get into a forced selling situation, I don’t think that is going to change any time soon.
The fed will probably start reducing rates later this year and that will be that.
Very interesting 3 years it has been.
Good morning...
A little closer to 100k subscribers.
🎉🎉🎉🎉
Good morning! Getting closer :)
IMO, this stuff is poetry. And if you've been watching this channel for years now, as I have, this poem means that if you've been hunting for a home for a while now, find that seller that panicking a bit, and let your realtor know to get you something....the rates are dropping, and you can lock in for likely a bit lower than this even. If rates really drop, refi. If not, you've got a pretty good rate....and the seller gave you a good deal. The key is, your realtor finding that deal. Thanks again Jason....awesome, as always. Love your channel. Everything is backed up by numbers...not BS.
I greatly appreciate your kind words. I appreciate you.
Home sales may rise a little with rates at 6.9%. But homes are still largely unaffordable for first-time buyers.
Unfortunately, the issue aren't so much the high interest rates when buying a home. The main issue are the high prices which mean MUCH higher property taxes and insurance that ppl cannot afford. However, this takes YEARS to unfold because once the person buys the home, they will probably be able to pay for the carrying costs until they can't anymore because both property taxes and insurance have more than doubled in the past 2-3 years. If there is a recession, hold on to your hats boys and girls, because the wave of foreclosures will be massive.
Literally nothing you said is accurate.
And it doesn’t make a difference.
Mmm it’s still basically the same.
The question should always be what's my IRR?
Add in your emotional estimated value of owning a house vs renting. If your IRR is below the risk free rate of return, or whatever your opportunity cost is (investing in a business), then don't buy
The "American dream" of owning a home is an emotional marketing tool, but I guess it's real for some less-logical people
If rates go down that means house prices can go up. Do people still prefer to buy down their rate?
Apparently they prefer hyperinflation.
Yes, if rates go down substantially that could cause prices to increase further.
will also loosen up the golden handcuffs and cause a lot of churn.
There is no need to buy now if you can wait another 3 months…
What's happening in 3 months? (Other than another 3 months wasted on rent)
The housing market moves very slowly so in 3 months we likely won't see any dramatic changes. Why do you feel waiting 3 months will help?
@@user-oy5wk6sg5f Fed reserve will surely cut by .25 by Spetember, and probably 2-3 cuts before the end of the year, That's a full point of mortgage
If sales dont increase with this drop in rates means the demand is dead. Deman bought the new construction.
It will be interesting to see pending home sales in the last half of July into August if rates stay at or below these levels. That will be telling. It's also seasonal to see pendings decrease starting around May or June (like this year) but let's see how pendings compare to the same time period in years past and I'll keep everyone updated.
Man, we don't care about the rates. The rates are fine. Interest rates like they were in the late 20-teens thru 2022 were not the rule. We will never see those rates unless the economy goes belly up. Stop trying to sell the rate nonsense. With all due respect, you sound like a cheerleading realtor (salesman). There are no houses that are "priced right" and rates are not too high.
Finally a glimmer of hope
Rates may come down a bit more today too :)
Hope for what? Higher prices?
Rates do matter!!!!
If you’re a homeowner with 8% rates this is the best time to refinance. All VA, FHA and USDA loans DOESNT REQUIRE EQUITY. It’s called streamline or VA IRRRL. Example a 700k with 8% rate and you’re able to refinance it at 6.5% That’s a savings of 1k and use the money to pay your consumer debt or emergency fund or savings. Do not use it for vacation or buy luxury vehicle😂. Don’t forget to shop for rates. Use a broker they multiple access to lenders and compare rates apples to apples whatever that saves you the most money. Your welcome 😂
"Do not use it for vacation or buy luxury vehicle"... well said!
People who buy a $700k house aren't /shouldn't be worried about $1k. If they are, they are fools with money.
@@Pragmatist1stI’m in San Diego and our median listing here is 1M a 700k price range will get you a shed here 😂.
1😊
Good morning, Steve! Finally the weather cooled down in Sacramento 😎
@@JasonWalter1 Thank God! Now we have to buckle up for the crazy electric bills!🥵😱🤬
@@Steverz32yep! 100’s coming back again soon 🙃