How did mortgage rates start the last week of August?

Where did mortgage rates start the week?

Mortgage rates finally released a bit of pressure after last weeks’ highs. The national average for a 30-year, fixed-rate mortgage ended Monday’s session at 7.29%, down 0.10%* from last Friday.

There are several economic reports this week that may influence the mortgage market. However, it appears that traders are looking to get out of positions they took recently, and it could be a sign that the market is expecting more good news from CPI data. We’ll have to wait until Thursday’s data release.

Tuesday will have the S&P Case-Shiller home price index and Wednesday will see pending home sales data for July 2023. Either of those reports could also move the market.

Which mistakes could homebuyers make in the current market?

Given how challenging the current housing market it is, it’s entirely possible for homebuyers to make an avoidable or unforced error trying to get the market right.

Realtor.com put together a list of common mistakes that homebuyers may be tempted into trying in the current market. The biggest and most common mistake? Trying to time the market. So says Mason Whitehead, Dallas-based branch manager at Churchill Mortgage, “The biggest mistake buyers make is not moving forward now in the hope that rates or prices will come down. At least in Texas, one of the states with the highest demand nationwide, that is just not happening.”

Waiting doesn’t mean market conditions will improve and trying to get the market exactly right is virtually impossible, even for seasoned pros. Whitehead suggested, “Over time, real estate is still one of the main wealth-building drivers for Americans, so it’s an investment that is more than likely going to benefit you and your family in the long run. Instead of continuing to pay rent and help someone else gain equity, take the opportunity to start earning it for yourself.”

Are we in a ‘nepo’ housing market?

According to a recent report from Redfin’s chief economist, Daryl Fairweather, a lot of younger homebuyers are getting help from their families. By Fairweather’s numbers, 38% of homebuyers under the age of 30 either used a cash gift from a family member or an inheritance to afford their down payment.

Fairweather said, “I think the reason that matters so much in this housing market is because of how expensive housing has become. It seems like the only way to kind of get your foot in the door to the housing market is to have some help.”

However, children with parents that are homeowners are much more likely to become homeowners themselves. In the same research, Fairweather explained  that 79% of the current homeowners had a parent who owned their home.

* National average rates accurate as of 8/28/23 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.