As mortgage rates hit a two-year low, Yahoo Finance's Dani Romero joins Alexandra Canal on Wealth! to break down what it means for potential homebuyers.
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This post was written by Naomi Buchanan.
Mortgage rates dropped to the lowest level in two years, incentivizing buyers back into the market. Yahoo Finances housing reporter, Danny Romero, joins us now with the breakdown. Danny, what's the latest?
Ally, it wasn't a week of big moves. Freddie Mac reported that the average 30-year fixed mortgage rate fell one basis point from last week. Now, this was the lowest level in two years, like you said. Remember, mortgage rates have dropped more than a percentage point since May. And lower rates has been a great opportunity for homeowners. Homeowners who had a 7% mortgage rate are now refinancing. The monthly mortgage payment is $300 cheaper from April. The median house payment is about $2,500. That's during the four weeks ending it sent in September, September 15th. So the big question is, will mortgage rates even move lower from now? And that really depends. Economists at Fannie Mae and Mortgage Bankers Association expect the 30-year fixed mortgage rate will end this year at 6.2%. So higher than the current range, Ally.
Danny, important stuff to keep track of, especially for those looking to buy a home. Thank you so much.