Mortgage rates tick downward
Freddie Mac reported that mortgage rates finally started to make their way down after a few weeks of trending upwards. The national average for a 30-year, fixed-rate mortgage ended the week of June 8th at 6.71%*, down from 6.79% the previous week.
We’ll have a better idea which direction the mortgage rate market will move after guidance from the Federal Reserve next week. It’s widely speculated that the Fed could pause rate hikes next week for the first time in over a year.
How many homes does the U.S. need for middle income buyers?
According to a study by the National Assocation of Realtors, the U.S. is in need of at least 320,000 homes valued up to $256,000 to satisfy the current demand for middle-income homebuyers.
Additionally, middle-income buyers in the U.S. can afford to buy less than 25% of listings in the current market. Five years ago, this group was able to afford almost half of all available homes.
When it comes to metro areas that are a challenge to buy in, the report highlighted El Paso, TX, Boise, ID, and Spokane, WA have the fewest homes available for middle-income buyers. Three Ohio metro areas have the most homes available for middle-income homebuyers. Youngstown, Akron, and Toledo were the three areas highlighted.
Which metro area is seeing the fastest price drop in the U.S.?
RealEstateAgents.com reported that real estate values in the San Francisco Bay Area as the fastest dropping in the nation. The San Francisco-Oakland-Hayward market and the San Jose-Sunnyvale-Santa Clara market finished first and second place in the fastest dropping housing markets in the country when comparing year-over-year.
The San Francisco metro area saw a 6.10% decrease in value with the median home price dropping from $1.31 million in Q4 of 2021 to $1.23 million in Q4 2022. The San Jose metro area saw a 5.8% decline over the same time period. San Jose’s median home price dropped from $1.675 million in Q4 2021 to $1.577 million in Q4 2022.
* National average rates accurate as of 6/8/23 from CNN.com and are not advertised rates from Guaranteed Rate.
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