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Mortgage rates dropped to a 10 -month hollow, mortgage buyer Freddie Mac said on Thursday.
The latest Survey of the Primary Mortgage Market of Freddie Mac, published Thursday, has shown that the average rate of the fixed mortgage of 30 years of reference fell to 6.56% compared to the reading of 6.58% of last week.
The average rate on a 30 -year loan was 6.35% a year ago.
Only 28% of American houses now affordable for typical American household, because purchasing power falls
The average rate on a 30 -year fixed mortgage fell to a 10 -month hollow, said Freddie Mac on Thursday. (Joe Lamberti / Bloomberg via Getty Images / Getty Images)
“Purchase demand continues to increase lower rates on the back and solid economic growth,” said Sam Khater, chief economist of Freddie Mac. “Although many buyers of potential houses are always confronted with challenges with affordability, the lower rates can constantly give them the impetus to enter the market.”
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At the same time, the average mortgage rate fixed at 15 years is unchanged from last week reading 5.69%. A year ago, the rate on the fixed note at 15 years was on average 5.51%.
The new welcome of lower prices occurs as a recent report by Realtor.com revealed that less than 30% of houses on the US housing market are affordable for the average cleaning.
The average rate on a fixed mortgage of 15 years has remained unchanged from the previous week. (Al Drago / Bloomberg via Getty Images / Getty Images)
In August, only 28% of houses on the market were within the reach of the typical cleaning, the affordable maximum price of houses for median income fell to $ 298,000. In 2019, this figure was $ 325,000, according to the real estate company’s purchasing electricity report. This means that purchasing power is down by almost $ 30,000 at a national level since 2019, even if median income increased by 15.7%.
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The higher mortgage rates are largely to blame, according to the chief economist of Realtor.com, Danielle Hale.
“Even if income increases, higher interest rates have eroded the purchasing power of the real world of typical American household,” said Hale, noting that “this dynamic obliges many buyers to adjust their expectations, that this means that it means that you are looking for smaller houses, moving further or delaying the dream of home ownership.”
In August, only 28% of houses on the market were at the cost of the range of typical cleaning, according to Realtor.com. (Al Drago / Bloomberg via Getty Images / Getty Images)
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The prices of houses and interest rates have increased so significantly that they have reduced the purchase of house at its lowest level since the mid -1990s, according to the annual report on the country’s housing state of the Joint Center for Housing Studies (JCHS) of Harvard University.
