Mortgage rates have reversed all of the decline that had pushed them to more than a 1-1/2-year low of 6.08% at the end of September after Fed began cutting interest rates.
Just recently started looking since we want to sell our current one and buy another. We purchased 10 years ago, and after looking up and down the state, the average price increase for all houses is about 200k… so whether it’s a 300k house or a 600k house 5 years ago it is now 200k more for both right now. I honestly doubt there was a 17% drop in this state.
This isn’t a 17% drop in values, it’s a 17% drop in sales, meaning 17% fewer homes are being sold as of last month. I think there’s a good chance that’s pretty consistent on both sides of the transaction, since sellers are less willing to trade their low rates for a higher rate, and buyers are less willing to have the down payment for higher rates.
We’ve been interested in moving to upgrade our house (want a guest bed and a bigger master bed) and to reset the capital gains exclusion (we’re up around $350-400k, cap gains exclusion is $500k), but it’s not worth giving up our lower rate. We’ll be interested if rates drop below 5%, but with current rates around 6.5-7% (depending on term), we’re not interested.
I imagine a lot of homeowners are like us. They don’t need to move, so they’ll put it off until mortgage rates are more attractive, or until they need to move.
Just recently started looking since we want to sell our current one and buy another. We purchased 10 years ago, and after looking up and down the state, the average price increase for all houses is about 200k… so whether it’s a 300k house or a 600k house 5 years ago it is now 200k more for both right now. I honestly doubt there was a 17% drop in this state.
This isn’t a 17% drop in values, it’s a 17% drop in sales, meaning 17% fewer homes are being sold as of last month. I think there’s a good chance that’s pretty consistent on both sides of the transaction, since sellers are less willing to trade their low rates for a higher rate, and buyers are less willing to have the down payment for higher rates.
We’ve been interested in moving to upgrade our house (want a guest bed and a bigger master bed) and to reset the capital gains exclusion (we’re up around $350-400k, cap gains exclusion is $500k), but it’s not worth giving up our lower rate. We’ll be interested if rates drop below 5%, but with current rates around 6.5-7% (depending on term), we’re not interested.
I imagine a lot of homeowners are like us. They don’t need to move, so they’ll put it off until mortgage rates are more attractive, or until they need to move.