Mortgage rates have been down over the last few months, with the 30-year fixed mortgage now sitting at 6.17%

Published by RawNews1st

Mortgage rates have been creeping down over the last few months, with the 30-year fixed mortgage now sitting at 6.17%.

Now at an average of 6.19% on a 30-year mortgage, rates here have fallen for two consecutive weeks. And they’re just six basis points above the three-year low they had declined to in September, ahead of the Federal Reserve’s rate cut that month. So it could be a smart time for homebuyers stuck on the sidelines in the high-rate climate of the recent past to take action.

But with home prices elevated in many parts of the country and rates here still significantly higher than they were at the beginning of the decade, buyers must take a judicious approach, even with rates falling overall. That starts with considering a few important factors in this climate. Below, we’ll detail three worth examining closely right now.

In September, the typical home sold for 1.4% below asking, according to a report released last week from Redfin. That is the biggest September discount since 2019, before the pandemic-era surge in demand caused home prices to spike.

Would-be homebuyers might finally be regaining some leverage — and many are starting to notice. September sales of existing homes rose by the fastest pace in seven months, according to a separate report released by the National Association of Realtors on Thursday.

“As anticipated, falling mortgage rates are lifting home sales,” Lawrence Yun, NAR’s chief economist, said in a statement. “Improving housing affordability is also contributing to the increase in sales.”