The latest mortgage update from Freddie Mac is in! As of November 14, 2024, the 30-year fixed-rate mortgage averaged 6.78%, just slightly lower than the previous week at 6.79%. But the real story is when you compare it to last year, where rates were as high as 7.44%. This marks a significant improvement in affordability for potential buyers.
The 15-year fixed-rate mortgage is averaging 5.99%, down from 6.00% last week, and well below the 6.76% it was at this time last year. While rates are still higher than we’d like, the drop from last year’s rates means there’s more room to save and potentially pay off your mortgage sooner.
As a real estate professional, here’s my advice: Even though the 30-year rate may seem higher, a longer-term mortgage can still provide you with lower monthly payments. This will give you the flexibility to save money and even pay off your loan faster than expected!
Mortgage Applications Are On the Rise
Good news—mortgage applications are up! According to the Mortgage Bankers Association, applications increased by 0.5% last week, marking the first rise in seven weeks. What’s driving this change? FHA and VA loans, in particular, saw significant gains with purchase applications rising by 3% and 9% respectively.
These government-backed programs are providing buyers with more favorable terms, which is a win for many first-time buyers or those looking to put down a smaller down payment. However, refinance activity has dropped significantly to its lowest level since May. This is a sign of how higher mortgage rates are still impacting homeowners who are looking to refinance.
What Does This Mean for Buyers, Sellers, and Investors?
Here’s how these shifts in mortgage rates and applications affect you:
1. Buyers
For those thinking about buying, now might be a great time to reconsider your plans. With mortgage rates dipping, especially for FHA and VA loans, you may be able to secure a more favorable deal than you initially expected. As competition in the market eases slightly, it may give you the edge you need to find the perfect home.
2. Sellers
For sellers, it’s important to understand that while the market remains steady, pricing your home correctly is more critical than ever. Buyers are still feeling the effects of affordability challenges, so making your home stand out with the right pricing and presentation will help you secure the best deal.
3. Investors
In the commercial real estate sector, there has been an uptick in activity, showing that opportunities do exist. However, keep in mind that higher borrowing costs due to increased rates might impact profitability, so careful consideration is required before making big moves in this area.
Navigating These Changes with Expert Guidance
Whether you’re considering buying, selling, or simply keeping an eye on the market, these shifts in mortgage rates are significant. But don’t worry, you don’t have to navigate this alone!
If you’re unsure whether now is the right time to buy, I’m happy to help you evaluate your options. I’m well-connected with trusted mortgage lenders who can provide expert advice, whether you’re looking to move now or planning for the future.
Remember, I specialize in real estate, not loans, but I’m here to connect you with professionals who can help guide you through the mortgage process. If you’re ready to take the next step, let’s chat about your next move!
Watch My Latest Video for More Insight
For more tips on navigating today’s mortgage rates and market trends, I’ve created a detailed video where I break everything down even further. Check it out on my @TheBlanchardTeam and don’t forget to subscribe for more updates on the real estate market in New Jersey and beyond. You can also click the notification bell so you never miss a new video!
I hope this market update was helpful to you. If you have any questions or need assistance with buying or selling your home, don’t hesitate to reach out. I’m always here to help guide you through the process!
Thanks for reading, and I look forward to helping you navigate these market changes!
