As of October 24, average mortgage rates rose for the third straight week. Granted, they still remain very low compared to this time last year. But according to Freddie Mac, the 30-year-fixed rate rose to 3.75% which is 6 basis points higher than the previous week.
Mortgage rates hit a 2019 low at the beginning of September. While the rates have obviously risen since then, it’s been slight. Numbers are still a full percentage point below where they were this time last year. What this has done is help people who might otherwise have struggled making mortgage payments.
What Does This Mean for the Future?
So far this year, the lower mortgage rates have helped convince people to shop for homes. However, this year has also seen record low inventory. Not as many people are selling, so when a house does hit the market, it either sells very quickly or the price gets driven up by people competing for it. That trend may be shifting.
What experts are currently witnessing is the median sales price for new construction beginning to drop. In September, this number dipped below $300,000 which indicates that builders are now shifting to creating new construction at a more affordable price point. This is good news, especially for the first-time homebuyer who has otherwise been priced out of the competition.