By Melissa Dittmann Tracey | Realtor Magazine
The interest rate on a 30-year loan has averaged above 7% for four consecutive weeks. It’ll have to come down significantly for most prospective buyers to return to the market, a new survey shows.
The magic number for home buyers may be 5.5%.
That’s the mortgage rate threshold at which many would-be buyers would jump back into the market, according to a survey from John Burns Research and Consulting. Seventy-one percent of prospective home buyers say they won’t accept a rate on a 30-year mortgage above 5.5%, the survey shows. But it may be a while before rates fall to that point. While the interest rate on the 30-year loan eased to 7.12% this week, it has averaged above 7% for four consecutive weeks, Freddie Mac reports.
