Mortgage rates have continued to drop. (action))
There are good news for buyers of potential houses: mortgage rates have continued to look this week. In January, Rates reached 7.04%The highest level since last May. This week, however, rates of 30 years fell to 6.76% for fixed rate mortgages, According to Freddie Mac.
“This week, mortgage rates have decreased to their lowest level in more than two months,” said Sam Khater, chief economist of Freddie Mac. “The drop in mortgage rates, combined with improving modestly stocks, is an encouraging sign for consumers on the market to buy a house.”
Last week, mortgage rates of 30 years were on average 6.85%, so the drop in rates for this week is somewhat important. Rates for mortgages of 15 years also dropped this week by 6.04% to 5.94% for fixed rates.
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The prices of houses decrease in certain regions
The prices of houses fall in many areas, although they are still not near pre-countryic prices. About 23% of sellers reduced their registration prices in January, Zillow found.
“The owners finally return to the market as the effects of the ease of locking rates over time, but buyers are still struggling with high costs,” said Zillow chief economist Skylar Olsen.
“The sellers are in good position and are ready to make price reductions to conclude an agreement,” said Olsen. “Equity are almost record peaks, and the general economy and the financial markets are surprisingly strong. The houses are sold faster than before the pandemic.”
The value of houses is still up 44% compared to the pandemic, prices increasing by 2.6% compared to last year. Despite the high prices of houses and obstinate buyers, more sellers put their house on the market, because the “rates locking” effect begins to weaken.
The new announcements increased by almost 12% in annual shift in January. The sellers seem tired of waiting for the prices to break and list their homes in response to various events in life. Zillow found that 78% of sellers were influenced by events such as new jobs or family changes.
Many of these sellers get even more than they have originally listed their house. Almost 25% of houses sold in December of last year were sold more than the original registration price. It is higher than 19% of houses before the pandemic.
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The rental is even more affordable than the purchase of houses in most places
Despite the increase in rental costs, rental is always cheaper than the possession of a house, according to a Realtor.com report.
Pittsburgh and Detroit are the only two metros with lower average registration prices, and they are two of the most affordable cities to buy. The average price in Pittsburgh is $ 229,700 and is $ 239,950 to Detroit. The rent increases in these two cities, so the purchase of a house can be cheaper in the long term.
“For most Americans, possession of a house is still a large part of the American dream, but the monthly lower rental costs in all 50 largest markets, except two, are a key consideration,” said Realtor.com chief economist Danielle Hale. “This advantage relating to the cost is one of the reasons why we expect an increase in households in the tenant and the decline in the home ownership rate in 2025.”
Rental can be cheaper than possession, but rental costs are still raised, even if rents drop technically across the country. The rent costs in January 2025 are lower than those in 2024 and 2023, but they still exceed rent prices from January 2020 by $ 257, found Realtor.com.
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