Lower Mortgage Rates Are Heating Home Prices This Summer

Mortgage rates have been falling since the last week of April and may be reigniting home price appreciation. The lower the rate the more purchasing power buyers have.

The median price of homes sold in May rose 3.6% from a year earlier. As mortgage rates have fallen, there has been an uptick in the number of people wanting to buy homes.

A report from CoreLogic showed prices up 3.6% in April, the first annual increase since March 2018. "Mortgage rates are 0.6 percentage points below what they were one year ago and incomes are up, which has improved affordability for buyers. However, price growth has remained the highest for lower-priced homes, constraining housing choices for first-time buyers,” said Frank Nothaft, chief economist at CoreLogic.

A Wallick & Volk Mortgage Advisor can provide financing for your new home. Find us at www.wvmb.com