Mortgage Rates Have Dropped Slightly Can Granbury Buyers Expect Them to Drop Further?
Purchasing a home in Granbury and in many areas across the country has been a bit more challenging, to say the least in the recent past. Mortgage rates climbing higher at a faster rate than predicted and remaining high for longer than expected coupled with a continuing increase in home values/prices and a low inventory of homes for sale has made for a much different real estate market.
Recent news of decreasing mortgage rates however has been promising for potential homebuyers. Last week, the week ending July 20, mortgage rates dropped to 6.78% for the traditional 30-year fixed-rate mortgage. Rates came down slightly from 6.96% which was the highest they had been since the peak of increases we saw in November 2022 which was an interest level not seen in decades.
Does this mean there is hope on the horizon for home buying? Some real estate experts are saying that buyers should not start rejoicing quite yet, despite other very popular news headlines of mortgage rates coming down significantly in the next few years. The Chief Economist at Realtor.com for example believes that inflation data may lead the Fed to hold off on any actions and may lead to another Fed rate hike in the coming weeks which would lead to mortgage rate increases.
Current Real Estate Market Statistics That Impact Home Prices and Mortgages
Home Prices Have Dipped
Mortgage rates are still below the 7.08% high we saw last year which is a small victory for current homebuyers. Home prices have also seen a slight decline in the past year. The national median home price has decreased for six straight weeks. These drops are also picking up a little speed as prices are down an average of 0.9% when looking at year-over-year numbers. The week prior to this numbers showed only a 0.2% price decrease in the year-over-year numbers.
Home price drops are promising news as mortgage rates decrease, but the drop is still slight.
Mortgage Rate Impact Due to Housing Inventory
Home prices and the number of homes for sale are highly dependent upon each other. Just like the sale of a home is dependant on having both a selling and a buying party. With a very low number of homes for sale, it keeps homes in high demand and this drives prices to remain at a higher value.
As of July 15th, the housing inventory across the country decreased for a fourth straight week in a row. This is shown to be a 6% decrease in housing inventory compared to the numbers from July 2022. The number of homeowners putting their homes on the market for sale has decreased for just over one year straight. Many real estate experts attribute this to the number of American homeowners that have a current mortgage with an interest rate below 6% and not wanting to trade it for today's significantly higher mortgage interest rates when they go to purchase their next home.
So mortgage rates have helped to determine home prices as they are contributing to a low housing inventory not seen in some time and the low inventory is pretty much THE driving factor behind homes retaining such high values. Many experts say that current mortgage rates have a majority of homeowners feeling like they are locked into staying in their current homes.
A Silver Lining in the Home Inventory Clouds
Home inventory has been a huge factor for a few years now in how difficult it is to purchase a home in Granbury and beyond. But the numbers are getting better. On July 15th there were 1002,000 new homes listed for sale which is the largest increase of homes for sale in the last five weeks. An increased number of homes for sale at a lower fair market value with slightly lower average mortgage rates gives a triple cord of promise for Granbury homebuyers.
The bottom line? Mortgage interest rates are expected to fall at some point, but the economy currently is very hard to predict as we have seen with all of the fluctuating opinions. Just last week we saw the headline of rates expected to fall to 4% at a quicker pace than expected, and now we are seeing experts saying expect to see interest rates rise again in the next few weeks.
The best homebuying strategy currently is to know what you need in a Granbury home and get your personal finances to a point where you can get into that Granbury home that you need and truly want. To make your homebuying goals a reality in Granbury talk your plans and hopes out with a local real estate agent. They can help give you a detailed insight into the local market and what it looks like to purchase the home you are looking for.
For more information about available real estate in Granbury and surrounding areas please contact us any time.