Mortgage interest rates continue to hold steady at 6.66% this week. As mortgage interest rates have been flat since December 21, home buyers can plan smartly as they enter the buying market. Potential buyers know the homes they view are within their price range without any expected large swings.
For a $400,000 home (between the median of an existing home and a new home), a buyer would be paying $2,056 for a monthly mortgage payment. While this assumes a downpayment of 20%, the typical downpayment for a recent first-time buyer was 8%, and the typical downpayment for a repeat buyer was 19%. This would change the monthly mortgage payment for those buyers who did not place 20% down.
While more buyers are expected to enter the market in spring as mortgage interest rates decline, bidding wars could intensify in a limited housing inventory environment. These bidding wars are likely to push home prices up in some areas. Even last year, as mortgage interest rates were higher and there were fewer buyers, the most difficult task for home buyers was finding the right home. REALTORS® play a critical role in helping buyers with negotiations and in finding the buyer the right home.
Originally posted in National Association of REALTORS®.