Homebuyers See a $40,000 Increase in their Purchasing Power

With the recent drop in mortgage interest rates, a homebuyer with a $3,000 monthly budget can now afford $40,000 more in purchasing power for the same monthly payment. 

A $3,000 monthly budget purchases a home at $453,000 with a 6.7% mortgage rate. That same monthly payment in October (with an average rate of 7.8% purchased a $416,000 home!

In a recent Business Insider article, Chief Economist at Redfin, Daryl Fairweather shared to home buyers that, “My advice to serious house hunters: Trying to time the market around mortgage rates is probably a waste of energy, as affordability is unlikely to change meaningfully in the next several months.”

This news is tempered by warnings that a continued drop in interest rates will likely see an increase in demand & a return to the multiple-offers that plagues buyers in 2021 & 2022.  In a recent CBS News Article, experts shared that, "The imbalance, with more demand than supply, will lead to further price increases. However, some of the impact of these price increases will be offset by lower borrowing costs resulting from the reduced interest rates."  

For more information on what is happening in our local DFW market or in your specific community, please reach out for a private consultation.  

If you’re looking to buy a home, you’ve probably been paying close attention to mortgage rates. Over the last couple of years, they hit record lows, rose dramatically, and are now dropping back down a bit. Ever wonder why? Check out our resent article on WHY!