Mortgage rates are one of the largest determining factors when it comes to buying or selling a home. When the rates are low, not only do buyers have the opportunity to borrow more and buy a bigger home, but sellers benefit from more money in the marketplace as well.
This month the report from Freddie Mac claims that fixed-rate mortgages remain unchanged. This is good news! Many national economists and real estate experts expected a rate spike to start 2019. This has turned out to be untrue so far.
Sam Khater, Freddie Mac’s chief economist, says, “Mortgage rates have stabilized during the last month and are essentially at the same level as last spring – yet the most recent home sales are roughly half a million lower over the same period. Given that the economy remains on solid footing and weekly mortgage purchase application activity has been strong so far in 2019, we expect the decline in home sales to moderate or even reverse over the next couple of months.”