Instant Reaction: Mortgage Rates, February 29, 2024

Unfortunately for home buyers, mortgage interest rates ticked up again this week to 6.94%. While this is still below the rates seen in the fall of 2023, it impacts home buyers’ excitement about entering a spring market. For a $400,000 home, with a 20% down payment, the mortgage payment would be $2,116.

It is important to note that this is a unique housing market, where 32% are not financing their home purchase and can make an all-cash purchase—likely partly because of strong gains in housing equity.  For first-time buyers who are the most price-sensitive, the rise in mortgage rates poses a cause for concern as they may be priced out of the market.