On Monday, Nerdwallet released the average mortgage rates in the country:
…the average interest rate on a 30-year fixed-rate mortgage rose 20 basis points to 6.33% APR. The average rate on a 15-year fixed-rate mortgage went up 25 basis points to 5.718% APR, and the average rate on a 5-year adjustable-rate mortgage went down seven basis points to 6.339% APR, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 19 basis points lower than one week ago and 337 basis points higher than one year ago. A basis point is one one-hundredth of one percent. Rates are expressed as an annual percentage rate, or APR..
Let’s compare these rates to last Monday’s(11/28) rates:
- 30-year fixed rate: 6.524% APR 11/28→ 6.55% APR 12/5
- 16-year fixed rate: 5.918% APR 11/28 → 5.718% APR 12/5
- 5-year adjusted rate: 6.518% APR 11/28 → 6.339% APR 12/5
So there you have it; we’re starting another week with lower/equal rates than the prior week. I can think of a few buyers that will be very excited about this! Now rates are still 337 points higher than in December of 2021, so the question you’re probably asking is when is it a good time to buy a home?
The best time to buy is whenever you find a home you love and can afford the monthly payments. If you bought a $300,000 house last year at a 2.78% interest rate, your monthly mortgage payment would be $1,229. If you buy that same house today, the payment would be $1,906, which is a $677 difference. That does add up, but there is an upside, the person buying today will be able to refinance down the road, while the one with the 2.78% rate will likely never refinance. So again, the best time to buy is when you can afford to buy.
Keep that line of communication open with your lender and realtor, enjoy this market where you can see a home more than once, and be confident that the right time will come. Buyers have more negotiating power now than this time last year, so you may be able to get your home for less than you realize, or you can see if the sellers are willing to help with closing costs!
What do we see in the New Orleans Market? Check out our Monthly New Orleans Market Review, November comes out this Thursday! Read the October Snapshot now!
If you have any questions about strategizing whether to buy now or later, please feel free to reach out to our team of Real Estate Advisors. We can help you make the wisest decision for you!
Questions? Reach out to one of our advisors for a chat!
Link to full Nerdwallet article: https://www.nerdwallet.com/article/mortgages/mortgage-interest-rates-forecast