Mortgage rates decrease slightly but still remain high

The median price for a house in May 2022 rose more than 6% to $276,000. The number of homes for...
The median price for a house in May 2022 rose more than 6% to $276,000. The number of homes for sale statewide was 21,718 in May 2022 compared to 28,717 in May 2021, an inventory decline of 24.4 percent.(WIFR)
Published: Jul. 1, 2022 at 8:12 PM CDT
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BISMARCK, N.D. (KFYR) - Mortgage rates dipped slightly this past week, after last month, we saw the biggest one week jump since 1987.

With sky high prices, analysts say for those looking to buy a home. this still remains the least affordable time since before the financial crisis of 2008.

“Within the last few days towards the end of June, we saw rates start to drop some and a large part of that is our housing inventory has risen about 19%, just this last month. So we’re starting to see that supply in housing, catch up with the strong demand that we’ve seen since post pandemic,” said Steven Richard, Financial Advisor at Securian Financial Advisors of North Dakota.

The average rate on a 30-year fixed mortgage fell to 5.70% this past week.

That has decreased from last week’s rate of 5.81%, but nearly double from the 3.22% rate at the beginning of the year.

“I don’t know that we’re, we’re necessarily seeing that much of a decrease in the interest rate to, to where, folks looking for a home are gonna be doing cartwheels over this news. But what we are seeing is that there is more supply coming to market and, people that are looking for a home do have more options than they maybe saw a few months ago,” said Richard.

Even though rates are high now, it’s not the highest they have been throughout history

“The average 1970 of our mortgage interest rate is just a bit below eight, if you can believe that. In1981, the, the higher rate was right about 16 point a half percent. So historically we’ve been much higher in interest rates, but, it is just that we’ve taken such a jump since, since the end of the pandemic that it’s, it’s really a shock to folks,” said Richard.

As rates decreased this past week, financial experts say the number of mortgage applications and applications for refinancing increased.

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