DAYTON, Ohio (WDTN) – Inflation may finally be easing, and if you are searching for a new home, that is great news.
According to Freddie Mac, the biggest weekly drop has taken place last week. 30-year fixed rate mortgages decreased from 7.08% to 6.6%.
At this time in 2021, mortgage rates were just over 3 percent.
“I think for this specific group of homebuyers, it’s kind of a sticker shock because we’re used to used to threes and fours, which is pretty low, historically,” Angie Orndorff, realtor with Bella Realty Group, said.
New signs of inflation slowing down could lead the Federal Reserve to slow down from another rate increase.
Assistant Professor of Finance at Cedarville University, Dr. Jonathan Burson, says, “That hope that the Federal Reserve won’t raise interest rates has allowed mortgage rates to come back slowly down to more reasonable rates than they were just a month ago.”
Experts say homebuyers may still be challenged, as mortgage rates are expected to stay volatile trough the end of 2022. Prices are still up in many areas too.
The good news is data shows that 20% of listings nationwide have seen price cuts.