Houston First Time Home Buyer’s Lower Buyer Power Due To High Interest Rate
Good morning. Home buyers continue to lose buying power while interest rate rocketed close to 7 percent before retreating a bit. According to Realtor.com® home buyers have lost about $107,000 in buying power this year. That means home buyers who budgeted for a $500,000 home at the start of the year may only be able to afford a home for $400,000 or less. For home buyers that budgeted $300,000 they will need to look into the $200,000 or less, price range.
Still, if you are looking to purchase a home in Katy 77450, as of this morning, there are currently 87 home listed for sale with an average price of $446.226 and median price of $399,000. Therefore, all things considered, if you budgeted for $500,000, with skilled negotiation, your agent should be able to secure a home of your choosing within the zip code.
On another note, Freddie Mac reports the following national averages for mortgage rates for the week ending Oct. 6:
30-year fixed-rate mortgages: averaged 6.66%, with an average 0.8 point, falling slightly from last week’s 6.70%. Last year at this time, 30-year rates averaged 2.99%.
15-year fixed-rate mortgages: averaged 5.90%, with an average 1 point, dropping from last week’s 5.96% average. A year ago, 15-year rates averaged 2.23%.
5-year hybrid adjustable-rate mortgages: averaged 5.36%, with an average 0.3 point, increasing from last week’s 5.30% average. A year ago, 5-year ARMs averaged 2.52%. Those were the days.
Yes, there is a lot going on right now but, it will get better. Until next time...Diana
