- 1 min read
- 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.
The Latest on Mortgage Rates
Mortgage rate fluctuations should come as no surprise. If you are buying a home or refinancing your existing mortgage, it is important to stay informed about the current mortgage rates.
Mortgage rates February 14, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of February 14, 2024 stands at 6.64%. This reflects a 13 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 February 14, 2024 is 6.12%, indicating a 22 basis points increase from last week’s rates.
What does the mortgage rate mean for you?
Mortgage rates play a vital role in determining your monthly payment. Let's take a look at the avergage interest rates (APR) for February 18, 2024 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- For a 30-year conventional loan, the interest rate is 7.03%.
- If you opt for a 15-year conventional loan, the interest rate stands at 6.19%.
Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,862. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,384.
Explore your options and secure pre-approval today!
To make your life easier, we highly recommend shopping around for mortgages and getting pre-approved. This will streamline the home-buying or refinancing process and make it a breeze. Ready to get started? Check Out mortgage rates now for the best options available.