Are homebuyers getting deterred by rates near 7%?
With the national average for a 30-year, fixed rate mortgage hovering around the 7% mark*, you would think that homeowners would be scared off of the current market. However, the recent data on the housing market shows that buyers are coming into the market and they are not deterred by higher mortgage rates.
According to a report from Freddie Mac, homebuyers are starting to realize that they’ll have to marry their next house and date their mortgage rate. Freddie Mac chief economist Sam Khater said, “Mortgage rates have hovered in the six to seven percent range for over six months and, despite affordability headwinds, homebuyers have adjusted and driven new home sales to its highest level in more than a year. New home sales have rebounded more robustly than the resale market due to a marginally greater supply of new construction.”
While most homebuyers are unlikely to welcome higher mortgage rates, new affordable housing construction has started to heat up, and there may be additional units coming into the market over the summer and fall in several popular metro areas. More affordably priced units could help offset higher mortgage rates.
Is an affordable housing project coming to Louisville, KY?
The city of Louisville announced that it will invest $22 million into a new affordable housing project for new complexes around the city. Six projects will receive much needed funding to create over 700 new homes around the Louisville metro area.
Mayor Craig Greenburg was quoted as saying, “During my campaign, I set the goal of creating 15,000 units of affordable housing across our city, and now as Mayor, my administration is taking action to make that happen. Everyone has the right to safe and stable housing, and by growing our affordable housing stock, we are giving residents a choice in how and where they live.”
What’s the most overrated aspect of redesigning a home?
In a recent interview, Christina Hall of “Christina on the Coast” fame, revealed the most overrated request she often gets from homeowners that are looking to redesign their home. It’s not opening up walls or updating a fireplace. It’s continuous flooring.
Updating flooring is an expensive process that can turn a simple redesign into a challenging process. In the latest episode of season 5 of Christina on the Coast, Christina was able to find new flooring to complement the existing flooring, so that they wouldn’t have to do a full replacement. Christina found similar material, but lighter tones to give the entry and kitchen a brighter look and feel.
*Accurate as of 6/30/23. National average rates are not advertised rates from MortgageRateNewsDaily.com.
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