Higher Interest Has Pushed Down Houston First Time Home Buyer’s Buying Power
Good morning. Home buyers continue to lose buying power while interest rate rocketed close to 7 percent before retreating a bit. According to Realtor.com® home buyers have lost about $107,000 in buying power this year. That means home buyers who budgeted for a $500,000 home at the start of the year may only be able to afford a home for $400,000 or less. For home buyers that budgeted $300,000 they will need to look into the $200,000 or less, price range.
Still, if you are looking to purchase a home in Katy 77450, as of this morning, there are currently 87 home listed for sale with an average price of $446.226 and median price of $399,000. Therefore, all things considered, if you budgeted for $500,000, with skilled negotiation, your agent should be able to secure a home of your choosing within the zip code.
On another note, Freddie Mac reports the following national averages for mortgage rates for the week ending Oct. 6:
30-year fixed-rate mortgages: averaged 6.66%, with an average 0.8 point, falling slightly from last week’s 6.70%. Last year at this time, 30-year rates averaged 2.99%.
15-year fixed-rate mortgages: averaged 5.90%, with an average 1 point, dropping from last week’s 5.96% average. A year ago, 15-year rates averaged 2.23%.
5-year hybrid adjustable-rate mortgages: averaged 5.36%, with an average 0.3 point, increasing from last week’s 5.30% average. A year ago, 5-year ARMs averaged 2.52%. Those were the days.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
