This is when you can expect mortgage rates to go down — and why you should buy before a recession hits
What is the current median monthly mortgage payment on a new home in the US as reported by the Mortgage Bankers Association?
The current median monthly mortgage payment on a new home in the US, as reported by the Mortgage Bankers Association (MBA), is $2,256. This figure is approximately 7% higher than last year, reflecting the impact of increased mortgage rates in recent times.
What is an "assumable mortgage" and what percentage of active mortgages are assumable according to Intercontinental Exchange?
An "assumable mortgage" is a home loan that can be transferred from the seller to the buyer. The buyer takes over the remaining balance of the mortgage, the interest rate, the repayment period, and all other terms of the original loan6. This can be a significant advantage in a rising interest rate environment. According to Intercontinental Exchange, about 23% of active mortgages are assumable5.
How many times did the Federal Reserve raise interest rates between 2022 and 2023, and what is the current benchmark federal funds rate?
The Federal Reserve raised interest rates 11 times between 2022 and 2023, taking the benchmark federal funds rate from 0% to 5.25-5.50%.