- Home prices does not appear to be heading downwards.
Housing Prices Show Sign of Instability in Latest Reports
Well, after a promising annual report for the year in September, it seems that we have fallen off the pace. This comes after a steady increase in housing prices that has gone on since April. The real question is whether this sign of instability marks another dip for home prices. I don’t think so, and here’s why:
- Year over Year Gains: Although the gains projected were not hit, housing prices have been increasing over last year. This is a good sign that this is a bump in the road and not a blockade. I would look for prices to bounce back in the coming months.
- Foreclosures Slowed: With much of the nation’s judicial foreclosure proceedings in review, fewer new homes are going to be entering the market this winter. This will increase the value of your home by increasing demand. This may or may not affect housing prices in your area.
- QE on the Way: The Fed will likely begin another round of aid known as Quantitative Easing, or QE, which will increase inflation and drive interest rates down. This should increase interest in home buying as well as housing prices in almost every area.
Nothing Set in Stone
Home prices are not always easy to predict. While it is likely that they will re-stabilize before the end of the year, there is always a chance they may not. The government has also not yet agreed to begin this new round of aid and may decide not to go forward with it. While that is unlikely, it is important to remember that staying on top of the facts will definitely help you make the right decision when it comes to mortgages and refinancing today.
Mortgage market: a pulse check
It is expected that mortgage rates are subject to change. Homebuyers and those refinancing their mortgages should pay close attention to the latest mortgage rate
Mortgage rates September 13, 2023
According to Freddie Mac, the 30-year mortgage rate for the week of September 13, 2023 stands at 7.18%. This reflects a 6 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
Additionally, Freddie Mac reports that the 15-year mortgage rate for September 13, 2023 is 6.51%, indicating a 1 basis points decrease from last week’s rates.
Understanding the impact of mortgage rates on your finances
When it comes to determining your monthly payment, mortgage rates are a key factor to consider. Here are the avergage interest rates (APR) for August 17, 2023 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- 30-year conventional loan is 7.27%
- 15-year conventional loan is 6.28%
Based on the provided rates, a $279,082 30-year mortgage would result in a monthly payment of $1,908. Alternatively, a 15-year mortgage would require a monthly payment of around $2,397.
Experience a smooth mortgage process: Shop around and get pre-approved today!
Shopping around for mortgages and getting pre-approved can make your home-buying or refinancing process easier. Ready to take the plunge? Check Out mortgage rates now for the best options available.
