Recent declines in mortgage rates has created millions more potential home buyers. In a new edition of Black Knight’s Mortgage Monitor report, the drop in rates has made home affordability the best it has been in 18 months.
Although home prices continue to increase, less expensive borrowing costs can be an offset. Even small drops in mortgage rates can make a monthly mortgage payment more affordable for home buyers. Black Knight reports that while the average home price has increased by $12,000 since interest rates peaked last November, monthly payments have declined $108 as rates began to retreat.
Lower mortgage rates could spur an increase in home sales as house hunters have more buying power.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.