Homebuyers Gain Purchasing Power As Rates Dip to Lowest in 3 Months
The average mortgage rate fell to 6.67% in early July, giving homebuyers a $16,000 boost in purchasing power compared to late May, when rates topped 7%. That rate drop means buyers on a $3,000 monthly budget can now afford a $455,000 home, up from $439,000 five weeks ago. Redfin Chief Economist Daryl Fairweather says this window of lower rates may be short-lived, making now an opportune time for both buyers to act and sellers to make strategic pricing moves.
According to Fairweather, “We expect mortgage rates to remain in the high-6% or low-7% range for the rest of the year, as the Fed has made it clear it doesn’t plan to cut interest rates. That makes now a good time for house hunters to lock in mortgage rates, as they’re unlikely to dip much lower in the near term–and they could bounce back up.”
