The recent report from Realtor.com®, in partnership with the National Association of REALTORS®, highlights the dual impact of lower mortgage rates on the affordability and availability of homes. The study reveals that the 80 basis points decrease in mortgage rates from 6.8% to 6.0% significantly increases the purchasing power of home buyers in all income levels.
For instance, buyers earning $100,000 could afford a home valued at $348,070 at a 6.0% rate, compared to $327,460 at a 6.8% rate, representing a 6.3% increase in affordability. Middle-income buyers ($75,000-$150,000) stand to benefit the most from this decrease in mortgage rates, with the ability to purchase 33,050 additional listings at a 6% rate. However, despite the positive impact, the market still faces a shortage of affordable listings, as even with lower rates, buyers earning $125,000 can only afford 55% of the listings, falling short of the ideal 72% in a balanced market.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
