Where did mortgage rates start the week?
Ahead of key inflation data and the upcoming mid-term election, mortgage rates actually started the week lower. The 30-year fixed mortgage rate dipped below 7.0%, and ended the day at 6.875%. The 20-year fixed mortgage rate was also lower on Monday and ended at 7.375%.
If you’re seeking a 30-year mortgage, this is an opportunity to lock in a mortgage rate below 7%.
Consumer confidence in the housing market is low
According to Fannie Mae, consumer confidence in the housing market has hit a new low. Of the individuals polled in October, only 16% said they thought now was a good time to buy a home. That’s the lowest percentage recorded since Fannie Mae started surveying in 2011.
Additionally, 37% of consumers said they expect home prices to drop in the next 12 months. This percentage was actually up from 35% in September.
How are pandemic homebuyers feeling now?
Not great, according to Yahoo Finance. Many who bought homes during the pandemic felt they either overpaid or made compromises on what they wanted. They were stuck in an environment of rising prices and short inventory, and they had to buy what was available instead of holding out for a home they wanted. The good news for folks who are experiencing regret at their home purchase is that they can likely still sell at or near the price they bought at, even if prices are starting to cool off. They’ll also be entering a home market that is facing less competition than previous due to the higher mortgage rate environment.
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.
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