Mortgage rates have fallen to their lowest level in over a year, with 30-year fixed-rate mortgages averaging 6.47%, down from 6.73% the previous week. This decrease is attributed to an "overreaction to a less than favorable employment report and financial market turbulence" according to Freddie Mac Chief Economist Sam Khater. Last year at this time, rates were significantly higher at 6.96%.
The drop in rates is expected to increase the purchasing power of prospective homebuyers and may encourage existing homeowners to refinance. The refinance share of market mortgage applications has reached nearly 42%, the highest since March 2022.
The upcoming presidential election is also impacting the housing market, with 60% of prospective buyers considering the election in their purchasing timeline. Many are waiting to see how the market reacts after the election before making a decision.
In terms of migration trends, more Americans are moving to disaster-prone areas such as high-fire-risk counties in Texas and high-flood counties in Florida. Factors such as lower prices and politics are driving these moves, despite the increasing costs of homeowners insurance.
Overall, the housing market is experiencing fluctuations in mortgage rates, buyer behavior influenced by the upcoming election, and shifting migration patterns to disaster-prone areas. As the market continues to evolve, prospective homebuyers are encouraged to explore their mortgage options and compare rates from multiple lenders to make informed decisions.