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Mortgage Rates fall under 7%. Is this the time to buy?

Blog Written by Francesca Villardi

Mortgage rates dipped below 7% this week, with the average rate for a 30-year fixed home loan falling from 7.03% last week to 6.99% for the week ending June 6, according to Freddie Mac.

“Mortgage rates retreated this week given incoming data showing slower growth,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Rates are just shy of seven percent.” Mortgage rates have been struggling for almost two months, going just above and below  the 7% mark. 

There are those who say that inventory will continue to rise by 30% each year. What does that mean for buyers? Well buyers are still sitting in a tough spot. Yes, there is more inventory but with rising prices and high interest rates it’s tough to decide to buy now or wait it out.

Mortgage rates now

Last week, mortgage rates climbed back over 7% after falling to 6.94%. It’s as if it is a game for home buyers wondering if this is the time or do we wait. After all, mortgage interest rates can make or break a deal especially if it is over a 30 year payment. That can come out to thousands or even hundred of thousands of dollars depending on the price of the house. Experts say that mortgage rates should decrease to around 6.5 by the end of this year or early next year.

And as good as that sounds comparing it to the interest rates of last year that hit a high of 8.45%. But they say we may never see mortgage rates as low as in 2021 in which rates were as low as 2.65%

Housing stock is up

The number of homes that are for sale continued to grow in May, with buyers seeing 35.5% more homes for sale for the week ending June 1 than last year. That was up for the 30th straight week compared to the year before. This was because the sellers saw mortgage rates drop and thought maybe this was their time to sell. Homes are still selling more slowly; they are still selling more quickly than pre-pandemic times.

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