Average rates for 30-year fixed mortgages dropped last week all the way down to 2.78%, according to Freddie Mac's PMMS. Potential economic consequences of the Delta variant are one reason we're seeing that dip, as one of the most infectious diseases ever seen by scientists wreaks havoc on the unvaccinated part of the population.
Super low rates have created a catch-22 where the sheer number of consumers who want to take advantage of those rates has overwhelmed inventory, driving home prices out of reach no matter how low rates go. Homeowners are afraid to sell if they will have to turn around and buy at those high rates, further constricting inventory, and around and around we go.
As the months go by, it's unlikely that those shut out of housing by rising home prices will be saved by federal action. As Senior Mortgage Reporter Georgia Kromrei explores in her latest article: "Investment in housing is nowhere to be found" in a bipartisan infrastructure bill making its way through the Senate.
"Any hope for housing-related items which once seemed within reach — such as down payment assistance, funding to repair public housing, or expansion of the low-income housing tax credit — are dependent on Democrats using reconciliation to pass a separate budget," Kromrei writes.
At the heart of the issue is how you define housing and whether you consider it part of the crucial infrastructure of our country. As Ed Brady, CEO of the Home Builders Institute notes in Kromrei's story, sewer systems, bridges and roads exist to support and move people to and from housing. "Infrastructure is housing, housing is infrastructure."
The average 30-year fixed-rate mortgage sank further after three weeks of declines to 2.78%, according to mortgage rates data released Thursday by Freddie Mac's PMMS.
Investors are tapping into today's hot rental market and can typically bring in 4-6 loans per year. Download CIVIC's free Guide to Growing Your Real Estate Investor Channel HERE.
Due to an increase in housing inventory, existing home sales increased in June, jumping 1.4% from May to a seasonally adjusted annual rate of 5.86 million.
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