Latest news with #Lautz
CNBC
30-07-2025
- Business
- CNBC
When will mortgage rates drop below 6%?
Mortgage rates need to get below 6% to reinvigorate the frosty housing market, according to the National Association of Realtors (NAR). A 30-year fixed-rate mortgage at 6% would make the median-priced home affordable for about 5.5 million more households, NAR economists shared at the July 16 Real Estate Forecast Summit. "If rates were to hit that magic number, it's likely that about 10%, or 550,000, of those additional households would buy a home over the next 12 or 18 months," the organization said in a release. But NAR's experts don't see rates hitting that threshold until next year. And Fannie Mae has predicted they'll stay at 6% or higher at least until 2027. While home shoppers may be hoping interest rate cuts later this fall will do the trick, national housing expert Jonathan Miller doesn't think it would move the needle. "Even with various Wall Street firms forecasting one to three rate cuts in the back half of 2025, it seems unlikely that cuts will be able to drive mortgage rates lower, Miller, founder and CEO of appraisal firm Miller Samuel, told CNBC Select. "There's just a lot of concern and uncertainty about the economy and the impact of tariffs." Banks are hesitant to cut mortgage rates in times of economic uncertainty, Miller said, when funding loans carries more risk for them. Just because rates will likely remain elevated doesn't mean you should wait two years to take out a mortgage, says NAR deputy chief economist Jessica Lautz. It may even be cheaper now, she added. "It's actually a really good moment for homebuyers when rates are flat," Lautz said, "as opposed to seeing a surge in demand when rates drop and having to compete, and maybe even bid up an offer, for that listed home." The current rate environment is an important consideration when mortgage shopping, Lautz said, but "there are so many factors that go into what someone is paying every month for their mortgage." Some are more under your control, including your credit score, debt-to-income ratio and the size of your down payment. If you're waiting for a rate drop, take the next six months to pay down debt and build your savings. You'll not only improve your credit score, but you'll have more to contribute upfront. Lautz added that, while rates have been historically high, they've also remained relatively flat, which can be very helpful. "They've been in the mid-6% range, 6.7% or 6.8%, since January, she said. "It allows a buyer to plan out the homebuying process, to look at homes with a realtor and to lock in a rate and feel okay about it. Not like they're going to miss out." Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.10–30 years620Conventional, FHA, VA, jumbo, HomeReady and Home Possible, Rocket ONE+ mortgage, refinancing, home equity loans6200% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo10, 15 or 30 years for fixed-term conventional loans, 30-year VA and FHA loans. Custom mortgages with fixed-rate terms from 8 to 29 years. Housing experts don't expect a significant decline this year, or possibly even next. Freddie Mac has forecasted that mortgage rates will hit 6.4% at the close of 2025 and 6.0% at the end of 2026 Rates have been flat since January 2025, hovering below 7%. NAR economist Jessica Lautz says rate stability makes for a great environment for homebuying. There are fewer shoppers on the market, home prices don't rise dramatically and buyers won't feel like. they're missing out by not holding off another month or two. While mortgage rates could go down in 2026, the ongoing housing shortage means average home prices won't show any signs of decreasing. Whether you'd pay more for a specific property in 2025 versus 2026 depends on a host of variables, not just the mortgage rate landscape. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of the tax system and products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Yahoo
09-06-2025
- Business
- Yahoo
First-time homebuyers are an endangered species in the U.S.
The dream of homeownership is fading for millions of Americans. Figures from the National Association of Realtors (NAR) show that only 24% of housing sales last year were by first-time homebuyers — that's down from 50% in 2010. The typical purchaser is also older than in the past, with an average age of 38, or about 10 years above historical norms. Such trends reflect the challenges of climbing on the property ladder as home prices hover near record highs, inventory remains low and with mortgage rates at their highest level in years. "There are fewer first-time homebuyers and they are older than we've ever seen, both because of headwinds inside and outside of the housing market," NAR deputy chief economist Jessica Lautz told CBS MoneyWatch. Opportunity missed Americans who are shut out from buying their first homes miss out on an opportunity to build wealth through homeownership, Lautz said. "It's their biggest asset, and with the delay into homeownership first-time homebuyers are losing about 10 years of housing wealth. And that's for those who can enter into the market," she said. "For those who can't, they lose out on housing wealth by not having that as the biggest asset in their nest egg." Only about 1 in 5 listed homes in March were affordable for households with $75,000 in annual income, according to a NAR analysis of property listings. Today, a household with annual income of $50,000 can only afford 8.7% of listings, down from 9.4% a year ago, according to the data. "The lack of homes, especially at affordable price points where they would be entering the market, has been plaguing first-time homebuyers for the last several years," Lautz said. "It's been a continual issue, especially with interest rates. It makes the cost of homeownership quite high." Along with inadequate construction of affordable housing, many existing homeowners are reluctant to sell their properties given their lower mortgage rates. "People who are homeowners have no motivational factors to move, so that's not freeing up inventory," Lautz said. "It's almost created a hoarding situation for those in low-interest rate mortgages who don't want to separate from them." Financial squeeze Other factors are making it hard for people to buy a first home. The high cost of rent gets in the way of saving for a down payment, while credit card debt, car loans and child care costs also hold first-time homebuyers back. More recently, meanwhile, the resumption of student loan payments is putting many people under financial pressure. Some Americans are managing to save enough for a first home by temporarily moving in with family or friends to minimize the cost of rent, Lautz said. But that approach isn't viable for everyone. "It has been a pathway to ownership for some. But for someone who is 38-years-old, moving in with mom and dad can get uncomfortable," she said. "For an older homebuyer, that might be less attractive for everyone involved." Australian reporter covering Los Angeles protests shot with rubber bullet by police officer Kristi Noem says "we are not going to let a repeat of 2020 happen" amid L.A. crackdown Magic in the dark: The fantastical worlds of Lightwire Theater
