Photo: phakphum patjangkata
The dream of homeownership may be inching back into reach for more Americans.
The average rate for a 30 year mortgage has now come down to 6.62 percent. That’s its lowest level in four months, offering some relief for a battered home sales market
“These are some of the worst real estate markets I’ve seen since 2008,” exclaimed financial planner Richard Rosso. “Houses aren’t moving. It’s been a deadly combination for buyers.”
For sellers too, as some of them have held onto their homes, and their less expensive mortgages, waiting for lower rates before they sell and move on. Last year, home sales sank to their lowest level in nearly 30 years.
“People who have been sitting on the sidelines waiting for rates to come down, this might get them to start looking again,” Rosso said.
Still he cautions that the new mortgage rates are “not a game changer.” While it’s an improvement from 6.72 last week, the current 30 year rate remains higher than the average rate of 6.47 percent a year ago.
So, qualified progress.
“New home buyers, they could have an opportunity here” Rosso said. “It’s like a giant frozen glacier right now. And it’s starting to heat up and drip some water.So that’s a good thing. You might want to resume your search.”