Does a 7% mortgage rate really matter to homebuyers?

Homes in Louisville, KY | mortgage rate news

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

in 10 minutes?

The pre-approval process is lightning fast, and can be completed
in under 10 minutes. Grab a few important documents to get started.
  1. Tax Returns
  2. Copies of W-2s (or 1099s for independent contractors,
    freelancers and the self-employed)
  3. A payroll stub
  4. A bank statement
  5. 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.