Home prices trending down
A new report just out shows home prices in June 2022 rose 18% from a year ago versus May’s increase of 19.9%. Last week, another report also indicated home prices had declined 0.77% from June to July. That’s the first monthly price decline in nearly three years.
While home prices are still a bit on the high side, the latest numbers confirm homebuyers are taking a break, and are forcing sellers and builders to lower prices. This is the kind of slowdown the Federal Reserve is hoping for in their war on inflation. If the trend continues, that’s even more good news for homebuyers.
Mortgage Rates in 2023?
According to Fannie Mae (The Federal National Mortgage Association), we could see the 30-year fixed move down to around 4.5% by the end of next year. While nothing is guaranteed, it does give homebuyers even more hope for the future.
On the other hand, it doesn’t mean buyers should try and hold out until next year. If you happen to find your dream home, don’t let it slip through your fingers because of high interest rates. See if you can still get your perfect home with the intention of refinancing in the next year or two when mortgage rates are predicted to come down.
First-time homebuyers guide: part 9
Everyone knows a fantastic real estate agent that you just have to use. But do you know what to look for? Despite the advice of family and friends, make sure the real estate agent is a good fit for you personally. A real estate agent needs to be knowledgeable, friendly and accessible. Don’t be afraid to ask tough questions and see how they respond. You need a real estate agent with integrity, who’s committed to putting you first.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
John Kistner is Guaranteed Rate’s Market Analyst. Market Updates are designed to provide readers with a high-level yet insightful view of how economic news, events and trends affect mortgage rates and the homebuying process.