Home buyers may be tempted to expand their search criteria to find places that offer greater affordability farther away from city centers. Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, notes that rural areas, which are seeing migration gains, continue to be a prime target for buyers. “With mortgage rates near 7%, many people are looking for more affordable homes in less dense areas,” Evangelou writes on the Economists’ Outlook blog. In general, she notes, homes are about 50% less expensive in rural areas and about 20% less expensive in the suburbs than in urban centers.
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%.
Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.
Source: N.A.R. | Magazine.Realtor | https://magazine.realtor/daily-news/2022/10/06/happy-halloween-mortgage-rates-average-666