Mortgage rates dip below seven percent, bring relief to homebuyers MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 Buyers are finally getting some relief as mortgage rates dip below seven percent for the first time in five weeks, according to a new Redfin report. As of May 15, the typical thirty year fixed mortgage rate was six point ninety nine percent, down from a five-month high of seven point fifty two percent three weeks earlier, but up from six point fifty five percent this time last year. That’s a good sign for a market that saw a four point three percent decline in pending home sales for the past three months compared to 2023. Week over week, pending home sales also declined, which is unusual for this time year of year.

 And it wasn’t just home sales feeling the loss of momentum, as potential sellers continue to stay put. Year over year, new listings rose ten percent but remained flat from the previous week, which Redfin noted is not typical for May. The report attributes the slump to the sky-high housing costs. During the four weeks ended May 12, the median home sale price rose four point seven percent from last year to $386,951, marking a new high for the month.

 The median asking price also hit a new high, increasing six point six percent from last year to $418,455. The steady decline in mortgage rates, along with six point three percent of sellers dropping their prices, is good news for potential homebuyers. Marsha McMahon-Jones, a Redfin Premier agent in Palm Springs, California, said high prices and rates are challenging, but there are ways for buyers to take advantage of the somewhat slow market.

 “Sellers know that high mortgage rates mean they should expect negotiations, expect offers to come in under list price, and be ready for some back and forth on things like repairs and closing costs,” she said. “Buyers may not be able to get a lower mortgage rate, but they’re often getting homes for slightly less than the asking price. It’s also a good time to buy a fixer-upper at a lower price point because those aren’t selling as quickly.”

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