If you’re in the market to buy a new home, some great news just came out this morning that will have you hitting up your agent and ready to make some offers. Interest rates fell 1 percent overnight on a 30-year fixed mortgage, drastically cutting down your future payments.
Just yesterday, Nov. 9, interest rates hovered around the 7.3% mark.
This morning, quotes are coming out as low as 6.3% for a 30-year-fixed mortgage.
To put this into perspective, on a $500,000 loan, that would mean a drop from a $3,428 monthly payment to $3,095 per month – a $333 dollar decrease in monthly payments overnight.
Thursday morning, the Consumer Price Index (CPI) report came out for October 2022, one of the most studied and important indicators in inflation metrics. And according to the report, the CPI has reached its lowest point since January of this year. Month-over-month, the CPI increased 0.3%. It had been increasing 0.6% in both August and September. In fact, it fell 20 basis points below what analysts were expecting as consumer price increases eased to 7.7% for October, a sign that inflation is finally cooling off.
In addition, as a result of all of this, the Dow opened 850 points up this morning.
We might just see home sales and transactions finally begin to pick up the pace, after falling for five consecutive months and decreasing at rates higher than the Great Recession.
So, overall, this is excellent news for consumers and home buyers, as well as sellers whose homes have been sitting on the market for a few months.
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