Press release
Relaxed mortgage rates mean serious savings for buyers
Rate lock is losing its grip on homeowners Twenty-one percent of homeowners surveyed by Zillow are considering selling, up from 15% one year ago. Monthly
About this update from Zillow Group, Inc.
[{"type":"text","content":"Rate lock is losing its grip on homeowners \nTwenty-one percent of homeowners surveyed by Zillow are considering selling, up from 15% one year ago. Monthly mortgage payments, down $143 from October peaks, are (technically) affordable again. Recovering inventory levels are far below pre-pandemic norms, and competition for listings is still stiff.SEATTLE, Jan. 16, 2024 /PRNewswire/ -- Buyers are getting some much-needed relief, and more homeowners appear to be breaking free of \"rate lock,\" according to the latest monthly report1 from Zillow®. Yet despite improvements in inventory, competition for homes is still relatively stiff.\n\n \n \n \n \n \n \n\n \n\"Buyers found significant savings as rates fell. But mortgage rates are fickle things, as we've seen in recent weeks, and they'll play a massive role in determining appreciation and affordability — especially for first-time buyers — going forward in 2024,\" said Skylar Olsen, Zillow chief economist. \"Fortunately, rate lock appears to be wearing off for some homeowners, who show encouraging signs that they're ready to come back to the market.\" \nA recent Zillow survey of homeowners found that 21% are considering selling their home within the next three years. That's up from 15% a year ago. \nThe survey, fielded in Q4 of 2023, also found that the share of homeowners considering selling was almost the same whether they had a mortgage rate above or below 5%.\nThat's a big change from six months ago, when homeowners with rates above 5% were nearly twice as likely to consider selling. \nThe survey data shows that more owners with low rates are warming up to the idea of selling, while those with higher rates probably purchased their house fairly recently. Current mortgage rates look to be less of a determining factor when considering a sale.\nA home purchase becomes affordable* againMonthly payments for a new mortgage on a typical home are now $1,790 — that's $143 less than in October. The drop has brought affordability back to home buying — by some definitions. For the first time since April, a new mortgage at 20% down now takes less than 33% of the median household income2. But that's a national average. Prices are so high that the median household can't even qualify for a mortgage in many expensive metros. A 20% down payment is a high bar, too, especially for first-time buyers. H...