Florida Realtors has put together the infographic below that shows how monthly payments for a home purchased at the median sale price in Florida change with a 1% change in mortgage interest rates. As the swings in mortgage rate changes have narrowed in recent months, the upside of waiting for a potential mortgage rate drop has likely shrunk as well.
Mortgage interest rates have trended slightly down over the last 30 days. The recent change will save new borrowers about $5 per month for every $100,000 borrowed. Average U.S. interest rates for 30-year fixed rate mortgages were at 7.50% as of this week. Last month at this time, they were sitting at 7.57%. Recent forecasts for changes in interest rates remain mixed.
Mortgage interest rates have trended up over the last 30 days. The recent change will cost new borrowers about $26 per month for every $100,000 borrowed. Average U.S. interest rates for 30-year fixed rate mortgages were at 7.57% as of this week. Last month at this time, they were sitting at 7.18%.
Home affordability poses a significant challenge, with 60% of U.S. cities experiencing home price increases in the second quarter, as indicated by data from the National Association of REALTORS®. The median monthly mortgage payment for a typical existing single-family home stands at over $2,200, factoring in recent average mortgage rates.
According to a recent survey conducted by OnePoll on behalf of Divvy Homes, home affordability has become so out of reach that two out of five Americans believe they would need to win the lottery to become homeowners. The survey, which involved 2,000 current non-homeowners, also revealed that only 53% of them are confident in their ability to own a home someday.