Instant Reaction: Mortgage Rates, November 2, 2023

Aspiring home buyers received two semi-encouraging news items this week: the Fed kept the federal funds rate flat yesterday, and the 30-year fixed mortgage interest rate remained nearly unchanged from last week. While both are higher than in recent years and impact the housing market, this could be a turning point for the relief potential buyers and sellers desperately need.

The 30-year fixed had a minor reduction to 7.76% from 7.79% last week. For home buyers, 7.76% means that the typical monthly payment would be $2,290 for a single-family existing home at the median price of $399,200. For the typical existing condo, the typical payment would be $1,901.

However, these are only broad strokes in a housing market that is local. In the West, the median home price is $606,100, and today’s rate means a monthly payment of $3,477. However, for buyers in the Midwest, where home prices are a median of $293,300, this means a payment of $1,693. Some home buyers face stiff competition with limited inventory in their price points and need significant help with negotiations for a successful home bid. A REALTOR® is essential to helping home buyers with this transaction.