Posted 1/29/2024, 5:42:00 PM
Lower Mortgage Rates Give Homebuyers $40K More Purchasing Power
- Homebuyers have gained $40,000 in purchasing power in last 3 months as mortgage rates cool to 6.7%
- A buyer with $3,000 monthly budget can now afford $453,000 home, up from $416,000 in October
- Median US home price is $363,000; at 6.7% rates, median monthly payment now $2,545 vs $2,713 in October
- Rate declines due to expectations Fed will cut rates in 2023 amid signs of housing market healing
- Redfin predicts 2024 will bring slight improvements in affordability, 5% more sales, 1% price drop