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Mortgage interest rates continue their now 17-week stay in the mid-6% range. While lower interest rates would improve affordability for potential buyers, knowing that those rates have stayed steady may make for a less fraught home shopping experience. Buyers know what to expect, and walking through potential homes remains a financially viable option. For a home buyer purchasing a $400,000 home at the current 30-year mortgage interest rate of 6.82%, with a 20% down payment, the mortgage payment would be $2,090. Down payments offset the mortgage payment. With a 35% down payment, as Older Baby Boomers had last year, the mortgage payment would be $1,698.
Homeowners continue to earn housing equity as home prices continue to increase. Potential sellers weighing the decision to move, even if they currently have a lower mortgage interest rate, may consult with experts to determine the down payment they are able to place on a new home. This calculation could prove favorable for many, especially if their home no longer works with a family or job change.
