November 18, 2024
As we move toward 2025, the U.S. housing market is showing signs of stability, particularly in mortgage rates. According to Freddie Mac data via the Federal Reserve, the average 30-year fixed-rate mortgage dipped slightly to 6.78% for the week ending November 14, 2024. While this is only a small change from the previous week’s 6.79%, it represents a positive trend for the housing market.
Experts suggest that stabilizing rates reduce uncertainty, creating a more predictable environment for buyers, sellers, and homeowners. Jessica Lautz, deputy chief economist at the National Association of Realtors, stated: “When rates are moving around a lot, it makes a lot of uncertainty in the market.”
Here’s a closer look at what this means for you:
For those actively house-hunting, steady mortgage rates offer clarity when planning a purchase. With the winter season traditionally seeing less competition in the market, buyers have a chance to find better deals.
Homeowners have benefited from record levels of home equity. In Q2 of 2024, U.S. homeowners with mortgages saw their net home equity rise to $17.6 trillion, an 8% increase from the previous year (CoreLogic). Sellers can leverage this equity to make larger down payments on their next property, helping to counteract higher borrowing costs.
If you purchased your home when rates peaked at around 8% last year, now might be the time to refinance.
While some believe political events like elections directly impact mortgage rates, the truth is more nuanced.
According to Lautz, mortgage rates will likely remain within the 6% range as we move into next year. While some volatility is expected, experts predict that huge swings are unlikely.
As Lautz says, “Even though rates are higher than they’ve been in recent years, this stabilization is probably good news for homebuyers.”
Navigating the housing market can be challenging, but understanding trends like mortgage rate stabilization can help you make informed decisions. Whether you’re buying, selling, or refinancing, the current landscape offers opportunities to achieve your real estate goals.
This article is based on insights shared by CNBC. Read the full story here.
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