Long-term mortgage interest rates spiked in the latest week, thanks to volatile economic data, resulting in the 5th straight week of rate increases, according to Freddie Mac. The average rate on a 30-year fixed-rate mortgage jumped to 6.72% during the week ended October 31, 2024, up from 6.54% the week before. A year ago, rates were much higher still at 7.76%. Freddie Mac is predicting that rates are cresting and they do not expect them to reach this year’s former highs.
The number of U.S. homeowners considered equity-rich slipped during the third quarter, according to property-data company ATTOM, although total equity is still near record highs. The percentage of homeowners with loan balances no more than half of the estimated market value of their homes dipped to 48.3%, down from the recent high of 49.2% in the second quarter of 2024. However, that number was up 47.4% from a year ago as home prices have trended upward over the past 12 months.
Sales of existing U.S. homes declined in September, even as sales prices increased, according to the National Association of Reators. Sales decreased 1.0% from August to a seasonally adjusted annual rate of 3.84 million. Sales were also down 3.5% from the year before. Meanwhile the median existing-home sales price rose 3.0% from September 2023 to $404,500, the 15th straight month of year-over-year increases. Inventory of existing-homes climbed 1.5% in September, hopefully giving homebuyers more choices going forward.
U.S. home prices increased 0.5% in September from the month before, achieving the fastest pace since April, according to Redfin. Prices also climbed on a yearly basis, rising 6% from September 2023. Of the 50 largest metro areas, Nassau County, New York had the biggest home price jump at 1.7%, followed by Philadelphia at 1.6%, and Virginia Beach, Virginia at 1.4%. Thirteen of the 50 metros experienced price decreases, led by San Antonio where prices fell 1% and Fort Lauderdale, Florida with a 0.9% decline.
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