When the Federal Reserve dropped mortgage interest rates late last week, headlines nodded to speculation that mortgage rates will continue to decline, which could help a housing rebound. But what does that mean for Dallas-Fort Worth home buyers and sellers who are reluctant to let go of their already great rate?
Dallas Mortgage Banker Lisa Peters offered this advice last month on the Dallas Dirt podcast for those caught on the mortgage rate carousel: If you’re waiting for mortgage rates to go down, don’t forget home prices and values are going up, too, and they’re outpacing the savings you’ll get on your rate.
As of February 1, 2024, the average 30-year fixed-rate mortgage stands at 6.63 percent, declining from 6.69 percent the week prior, according to Freddie Mac on Thursday. The 15-year fixed-rate is 6.30 percent, and the 30-year jumbo rate is 7.13 percent.
What all this really means is that inflation is leveling out a bit, new construction has delivered more homes into the market, and that Pennsylvania groundhog didn’t see his shadow, so an early spring real estate market is on its way.
Remember, historically, mortgage rates hit a record low of 2.65 percent in January 2021 before surging to 7.79 percent in October 2023.
“Next year, the house they want is going to [cost] three percent more, and three percent more after that,” Peters told Candy Evans on the podcast.
