The benchmark, 30-year fixed rate mortgage has dropped 8 tenths of a point, from 7.40 percent to 7.32 percent, according to Freddie Mac. One year ago, it was 6.19 percent.
Houston Association of Realtors, Chair, Theresa Hill, says there's no real 'magic' number its's more about the bottom line. "It's kind of an overall picture that the buyer has to buy into right now. They just have to be very cognizant of that overall budget." She said.
Hill says the inventory is up 6.3 percent year over year with 40,000 homes for sale in September. "With more inventory and somewhat stable prices, that does buyers more opportunities even with higher borrowing costs." She said.
Given what's going on the economy- with a war and higher costs of living, plus going into the holidays, perhaps buyers and sellers will wait until next Spring or remain frozen as they try to make ends meet and watch the market on the sidelines. "We have the war, inflation, and the midterms- and that just may be causing people to pause a little bit. I think the bigger question is where consumers feel comfortable with their total monthly payment. In essence, 7 percent? that's not an unusual mortgage rate. The 3-4 percent (during Co-Vid) she says- that was unusual." Hill said.
She says both buyers and sellers are adjusting their expectations with the new rate.
