Jul 12, 2024, 11:05 AM
Jul 12, 2024, 11:05 AM

Mortgage Rates Decline Amid Rising Inventory, Yet Market Remains Challenging for Buyers

Highlights
  • As of July 11, the average interest rate for a 30-year fixed mortgage was reported at 6.89%, slightly lower than last year's rate of 6.96%.
  • This decrease in mortgage rates comes amid rising home prices.
  • The market continues to reflect fluctuations impacting potential buyers and the housing landscape.
Story

Current mortgage rates are showing a downward trend, with the average rate for 30-year mortgages at approximately 6.96%, down from last year’s figures. The 15-year mortgage rate has also decreased to 6.17%, compared to 6.25% the previous week, and is lower than the 6.30% average from last year. This decline in rates is coupled with an increase in housing inventory, providing a glimmer of hope for potential buyers. According to Redfin, the average home price has reached a record high of $397,482, which, despite the increased inventory, continues to pose challenges for buyers. While the rise in inventory includes listings with price reductions, the overall market remains historically tight. Julie Zubiate, a Redfin Premier agent, noted that homes are taking longer to sell than usual, leading to some price adjustments. However, the combination of high prices and limited inventory creates a difficult environment for many prospective homeowners. A recent ServiceLink study indicates that younger generations are still optimistic about homeownership, with 63% of Gen Z planning to buy a home in 2024, compared to 59% of Millennials. In contrast, only 49% of Gen Xers express intentions to purchase this year, likely due to their previous home-buying experiences. The financial barriers remain significant, as the average income required to buy a home exceeds $100,000, prompting nearly 22% of Gen Z respondents to pool resources with friends for home purchases. For those looking to navigate the mortgage landscape, platforms like Credible offer tools to compare lenders and assess eligibility based on credit scores and income.

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