Mortgage rates are falling, improving home buying conditions. Here’s what to know before you act
Despite being a hallmark of the American Dream, buying a home is less affordable for many these days.
Higher mortgage rates and a shortage of houses on the market relative to demand have kept prices elevated and created a financial crunch for many would-be buyers.
The median sales price for homes rose again in July to $422,600, up 4.2% from a year earlier, according to the National Association of Realtors.
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“Current home price levels have priced many buyers out of the market,” said Nancy Vanden Houten, lead economist at Oxford Economics.
Although those sky-high price tags show little signs of easing, borrowing costs have been trending lower, offering some relief for homebuyers.