Mortgage rates dropped further this week, continuing the streak of weekly decreases to four in a row. This marks the largest decline since 2008.
Freddie Mac's Primary Mortgage Market Survey revealed:
While Sam Khater, the chief economist for Freddie Mac, remarked that the consecutive drop was likely due to consumers' uncertainty over current economic growth, home affordability has seen positive change.
Housing affordability increased by about 8% as mortgage rates dropped closer to 6%. And if inflation continues its slow down, we may see mortgage rates stabilize near 6% this month and going into 2023.
With higher rates, many Americans struggled to afford a median-priced house as the qualifying income exceeded earned income.
However, with a mortgage rate closer to 6%, housing will become more affordable for many homebuyers by altering the qualifying income needed to purchase a mid-priced home. For example, with a mortgage rate in the low 6% range, the typical family will have about $1,000 more than the income required to buy a mid-priced home.