Mortgage rates jumped for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans edged higher.
While mortgage rates are still on track to gradually come down this year, the path might be bumpy. Lenders price mortgages based on many variables, but overall, fixed mortgage rates follow the 10-year Treasury yield, which moves as investor appetite fluctuates with the state of the economy and Federal Reserve decisions.
The Fed indicated it’d cut rates in 2024, but policymakers held off at its latest meeting, citing the need for more promising economic data. The Fed has been working to bring inflation back to its 2 percent target since 2022.
“The Fed is not in a hurry to start cutting interest rates as the progress toward 2 percent inflation has encountered some turbulence,” says Greg McBride, CFA, chief financial analyst for Bankrate.
For now, the Fed expects to issue three rate cuts in 2024. When that happens, the rates on a variety of financial products, including mortgages, should follow suit.
Whether mortgage rates move up or down, though, it’s tough to time the market. Often, the decision to buy a home comes down to needs. Depending on your situation, it might make sense to take a higher rate now and hope to refinance later — buying a home at today’s prices rather than a higher price in the future, while building equity that much sooner.
Rates last updated April 15, 2024.
The rates listed above are averages based on the assumptions here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, April 15th, 2024 at 7:30 a.m.
30-year mortgage rate climbs, +0.08%
Today’s average rate for the benchmark 30-year fixed mortgage is 7.05 percent, up 8 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was lower, at 6.90 percent.
At the current average rate, you’ll pay $668.66 per month in principal and interest for every $100,000 you borrow. That’s $5.37 higher compared with last week.
15-year mortgage rate moves higher, +0.16%
The average rate for a 15-year fixed mortgage is 6.54 percent, up 16 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $873 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.
5/1 ARM rate increases, +0.02%
The average rate on a 5/1 adjustable rate mortgage is 6.58 percent, up 2 basis points over the last 7 days.
Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.58 percent would cost about $637 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
The average rate for the benchmark jumbo mortgage is 7.21 percent, up 12 basis points from a week ago. Last month on the 15th, the average rate for jumbo mortgages was below that at 7.04 percent.
At today’s average jumbo rate, you’ll pay principal and interest of $679.47 for every $100,000 you borrow. That’s up $8.11 from what it would have been last week.
Refinance rates
30-year fixed-rate refinance increases, +0.08%
The average 30-year fixed-refinance rate is 7.07 percent, up 8 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 6.85 percent.
At the current average rate, you’ll pay $670.01 per month in principal and interest for every $100,000 you borrow. That’s an increase of $5.38 over what you would have paid last week.
Where are mortgage rates heading?
With mortgage rates buffeted by many factors, it’s impossible to predict exactly when they’ll rise or fall. With the Fed still aiming for three rate cuts this year, it’s possible we’ll see lower rates sooner rather than later.
Keep in mind: The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What today’s rates mean for your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Located in California’s fertile San Joaquin Valley, Fresno stands as a testament to the Golden State’s agricultural heartland. As the fifth-largest city in the state, Fresno offers a unique blend of small-town charm and big-city amenities. From the sprawling vineyards of nearby wine country to the majestic Sierra Nevada Mountains on the city’s doorstep, Fresno is a gateway to outdoor adventure and natural beauty. With the city holding so many amazing qualities, it’s no wonder people are asking themselves, “Should I move to Fresno?”
If you’ve been wondering about making the move to Fresno, you’re in the right place. In this article, we’ll discuss the pros and cons of living in this city to help you decide if Fresno is the right choice for you. Let’s dive in.
Fresno at a Glance
Walk Score: 47 | Bike Score: 58 | Transit Score: 33
Median Sale Price: $385,000 | Average Rent for 1-Bedroom Apartment: $1,360
Fresno neighborhoods | Houses for rent in Fresno | apartments for rent in Fresno | Homes for sale in Fresno
Pro: Fresh local produce
Because of it’s location in the heart of California’s Central Valley, Fresno is a haven for fresh produce lovers. The city’s farmers’ markets, such as the Vineyard Farmers Market, overflow with locally grown fruits and vegetables. This agricultural abundance supports a dynamic local cuisine scene, with farm-to-table restaurants showcasing the region’s best. The availability of fresh, quality ingredients is a significant perk for residents who value healthy and sustainable eating.
Con: Air quality concerns
One of the challenges of living in Fresno is dealing with its air quality. With it’s position in a valley, the city often finds itself grappling with smog and pollution, particularly during the hot summer months. This can affect outdoor activities and pose health concerns for people with respiratory issues. Despite efforts to improve the situation, air quality remains a concern that locals must find ways to navigate.
Pro: Growing job market
In recent years, Fresno has seen growth in its job market, particularly in the healthcare, education, and agricultural sectors. New businesses and industries are setting roots in the city, offering a range of employment opportunities. This economic development is promising for residents and attracts individuals looking for new ventures. The evolving job market is a sign of Fresno’s potential for future prosperity.
Con: High cost of living
The cost of living in Fresno is 9% higher than the national average. The cost of utilities, such as electricity, water, and gas, tends to be higher compared to other cities in California. For instance, residents may find themselves paying more for electricity bills due to the region’s warm climate, which requires extensive use of air conditioning during the hot summer months. Additionally, water bills can be elevated due to the need for irrigation in agricultural areas surrounding Fresno. These higher utility costs can strain household budgets and make it challenging for some residents to manage these extra expenses.
Pro: Proximity to national parks
Fresno’s location is ideal for nature lovers and outdoor enthusiasts. It serves as a gateway to some of the country’s most stunning national parks, including Yosemite, Kings Canyon, and Sequoia National Parks. These natural wonders offer endless opportunities for hiking, camping, and exploring the great outdoors. The ability to take a day trip to such iconic destinations is a unique advantage of living in Fresno, providing an easy escape to nature whenever the city life becomes too much.
Con: Extreme summer heat
Residents of Fresno must prepare for the extreme heat that envelops the city during the summer months. Temperatures frequently soar above 100 degrees Fahrenheit, making outdoor activities uncomfortable and sometimes hazardous. This intense heat can limit recreational options and increase reliance on air conditioning, subsequently raising utility bills. The summer heat is a significant factor to consider for anyone thinking about moving to Fresno.
Pro: Unique local cuisine
Fresno’s culinary scene is a hidden gem, with a unique blend of influences from its diverse population and agricultural roots. Local specialties include dishes inspired by Mexican, Southeast Asian, and farm-to-table cuisine. Restaurants like The Annex Kitchen, which offers Italian-inspired dishes made with local ingredients, highlight the city’s innovative and delicious food offerings. For foodies, Fresno offers a delightful exploration of flavors that reflect its cultural diversity and agricultural abundance.
Con: Public transportation limitations
The public transportation system in Fresno, while present, doesn’t always meet the needs of all its residents. Coverage can be sparse, and frequency of service is often lacking, especially outside of the city center. This can make it challenging for those without personal vehicles to navigate the city efficiently. The limitations of public transportation can impact daily commutes, access to services, and overall mobility within Fresno.
Fresno boasts a strong sense of community, with locals often coming together to support small businesses, schools, and charitable causes. Neighborhoods host block parties, community gardens, and local markets that foster a sense of belonging. This community spirit is evident in the city’s response to challenges, where neighbors are quick to lend a hand. Living in Fresno means being part of a community that cares and connects, enhancing the quality of life for its members.
Con: Limited nightlife and entertainment options
While Fresno has its charms, it may fall short for those seeking a bustling nightlife or a wide array of entertainment options. The city has some bars, clubs, and cultural events, but the variety and frequency might not match larger cities. This can be a drawback for anyone who thrives on the energy of a vibrant night scene. Residents often find themselves traveling to nearby cities for concerts, festivals, and other entertainment pursuits.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
Average mortgage rates edged higher yesterday. It was a modest increase by any standards but tiny by comparison with Wednesday’s big jump.
First thing, it was looking as if mortgage rates today could fall. But that could change later in the day.
Current mortgage and refinance rates
Find your lowest rate. Start here
Our table is having technical problems. But we’re working hard to fix them.
Program
Mortgage Rate
APR*
Change
30-year fixed VA
7.222%
7.262%
+0.05
Conventional 20-year fixed
7.007%
7.058%
+0.07
Conventional 10-year fixed
6.51%
6.584%
+0.09
Conventional 30-year fixed
7.127%
7.173%
+0.07
30-year fixed FHA
7.056%
7.1%
+0.09
Conventional 15-year fixed
6.64%
6.713%
+0.1
5/1 ARM Conventional
6.785%
7.888%
+0.08
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock your mortgage rate today?
Markets have turned gloomy over the prospects of the Federal Reserve cutting general interest rates over the next few months. And that’s been pushing mortgage rates higher.
So, for now, my personal rate lock recommendations remain:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCKif closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So, let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:
The yield on 10-year Treasury notes fell to 4.50% from 4.55%. (Good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were falling this morning. (Good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices increased to $87.42 from $85.57 a barrel. (Bad for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices climbed to $2,414 from $2,361 an ounce. (Good for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Because gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — fell to 51 from 54 out of 100. (Good for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So, lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to decrease. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Find your lowest rate. Start here
What’s driving mortgage rates today?
Today
Two economic reports are scheduled for this morning.
The March import price index (IPI) landed at 8:30 a.m. Eastern. And that would normally be bad for mortgage rates. Markets had been expecting it to hold steady at 0.3% and it came in at 0.4%.
So, how come mortgage rates were falling first thing? Well, it’s too early to be sure. But those rates often move in the opposite direction after a sharp movement one way or the other. That’s simply markets reflecting on the change and deciding they over-reacted.
This morning’s other report isn’t due until 10 a.m. Eastern. And that means I won’t have time before my deadline to assess its likely impact on markets. They were expecting the preliminary consumer sentiment index for April to improve slightly to 79.9% from 79.4%.
A lower figure may help mortgage rates to fall while a higher one could push them upward. But this is one of those reports that rarely move those rates far unless they contain shockingly good or bad data.
Mortgage rates might also be affected by earnings reports later from three of the biggest U.S. banks, JPMorgan Chase, Wells Fargo and Citigroup. If they all tell a really positive story, stock market reactions could spill over into the bond market that largely determines mortgage rates.
Next week
We’ve had April’s two most important reports over the last six days. And, taken together, they were pretty bad for mortgage rates.
Next week’s reports aren’t typically as influential by a long way. But a couple of them (retail sales and industrial production) could move mortgage rates higher if they feed markets’ current pessimism over Fed rate cuts — or push them downward if they contradict it.
Don’t forget you can always learn more about what’s driving mortgage rates in the most recent weekend edition of this daily report. These provide a more detailed analysis of what’s happening. They are published each Saturday morning soon after 10 a.m. (ET) and include a preview of the following week.
Recent trends
According to Freddie Mac’s archives, the weekly all-time lowest rate for 30-year, fixed-rate mortgages was set on Jan. 7, 2021, when it stood at 2.65%. The weekly all-time high was 18.63% on Sep. 10, 1981.
Freddie’s Apr. 11 report put that same weekly average at 6.88%, up from the previous week’s 6.82%. But note that Freddie’s data are almost always out of date by the time it announces its weekly figures.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the four quarters of 2024 (Q1/24, Q2/24 Q3/24 and Q4/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Mar. 19 and the MBA’s on Mar. 22.
Forecaster
Q1/24
Q2/24
Q3/24
Q4/24
Fannie Mae
6.7%
6.7%
6.6%
6.4%
MBA
6.8%
6.6%
6.3%
6.1%
Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Verify your new rate
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Verify your new rate. Start here
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
Check your refinance rates today. Start here
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also, pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
So, for the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
Indeed, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Verify your new rate. Start here
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account as evidence of their financial circumstances. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. And this gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders. And it could save you thousands in the long run.
Time to make a move? Let us find the right mortgage for you
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Those mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
The City of Brotherly Love, Philadelphia, PA, is a historic city with landmarks like the Liberty Bell, Independence Hall, the Betsey Ross House, and Reading Terminal Market. With so much to offer, it’s no wonder about 1.6 million residents call Philadelphia home.
If you’re looking to rent an apartment in Philadelphia, the average rent for a studio is $1,343, while a one-bedroom apartment is $1,722. But those numbers might not fit your budget. ApartmentGuide is here to help. We’ve gathered a list of the most affordable neighborhoods in Philadelphia to rent this year.
11 Affordable Neighborhoods in Philadelphia, PA
From Hartranft to Cedar Park, Philadelphia has affordable neighborhoods that fit in your budget. And the best part is, they’re all under Philadelphia’s average rent for studio and one-bedroom units. Let’s jump in and see what Philadelphia neighborhoods made the list.
1. Hartranft 2. Cedar Park 3. Fox Chase 4. Near Northeast Philadelphia 5. Cobbs Creek 6. North Central 7. Upper North District 8. Oxford Circle 9. Southwest Philadelphia 10. Bustleton 11. Richmond
Read on to see what each neighborhood has to offer its residents.
1. Hartranft
Average studio rent: $850 Average 1-bedroom rent: $1,050 Apartments for rent in Hartranft
Hartranft is the most affordable neighborhood in Philadelphia, as the average rent for a one-bedroom unit is $1,050. There are plenty of reasons to love living in Hartranft, from attractions like Temple University to green spaces like Columbia Field. If you’re looking for a taste of the neighborhood, there are a variety of local restaurants to explore along North Broad Street. For renters living in Philadelphia without a car, there are several train stops in the area.
2. Cedar Park
Average studio rent: $840 Average 1-bedroom rent: $1,075 Apartments for rent in Cedar Park
Cedar Park is a vibrant area that’s just west of downtown Philadelphia. This affordable neighborhood has lots of attractions such as Ben Barkin Park and Malcolm X Memorial Park. Cedar Park is charming with its coffee shops and popular restaurants along Baltimore Avenue. You can also find lots of bus lines and train stops along Baltimore Avenue, so it’s a great area to get around without a car.
3. Fox Chase
Average studio rent: $962 Average 1-bedroom rent: $1,112 Apartments for rent in Fox Chase
With an average one-bedroom rent of $1,112, Fox Chase is the third-most affordable neighborhood in Philadelphia. This neighborhood is an excellent option as it’s near attractions like the Fox Chase Farm and Pennypack Park. Fox Chase is a bit further outside of the downtown area, so it’s a nice area if you’re looking for a suburban feel with access to attractions.
4. Near Northeast Philadelphia
Average studio rent: $990 Average 1-bedroom rent: $1,112 Apartments for rent in Near Northeast Philadelphia
Near Northeast Philadelphia is the fourth-most affordable neighborhood in Philadelphia. This neighborhood is a great option if you’re looking for access to plenty of shops and restaurants, like Philadelphia Mills and Northeast Tower Center. You can also find plenty of green spaces like Lardner’s Point Park, Wissinoming Park, and Benjamin Rush State Park.
5. Cobbs Creek
Average studio rent: $1,100 Average 1-bedroom rent: $1,200 Apartments for rent in Cobbs Creek
Just about 5 miles from downtown, Cobbs Creek is a stellar neighborhood if you want to live close to downtown. It’s also a great area if you’re living in Philadelphia without a car since Cobbs Creek has several bus and train stops. There are also parks nearby, such as Cobbs Creek Park and Sherwood Park. Cobbs Creek also has a lot of local restaurants and shops, like Booker’s Restaurant & Bar and Brown Sugar Bakery & Cafe Inc. Since it’s close to downtown, there are a few historic landmarks like the Paul Robeson House & Museum and Malcolm X Memorial Park.
6. North Central
Average studio rent: $850 Average 1-bedroom rent: $1,215 Apartments for rent in North Central
Next up is North Central, the sixth-most affordable neighborhood in Philadelphia. North Central is full of history and charm with tree-lined streets, historic buildings, and museums, like Wagner Free Institute of Science, Temple University, and Temple Performing Arts Center. This area also has plenty of parks, restaurants, and attractions along Broad Street. There’s something for everyone living in North Central.
7. Upper North District
Average studio rent: $1,062 Average 1-bedroom rent: $1,245 Apartments for rent in Upper North District
Nestled north of downtown, Upper North District is the seventh-most affordable neighborhood in Philadelphia. Upper North District has a bustling atmosphere, with plenty of local cafes and restaurants along Germantown Avenue and Broad Street, such as City View Pizza and Grill and Max’s Steaks. You can also check out some of Upper North District’s green spaces, like Hunting Park, which has trails, sports fields, and a pool.
8. Oxford Circle
Average studio rent: $1,355 Average 1-bedroom rent: $1,250 Apartments for rent in Oxford Circle
Oxford Circle takes the eighth spot on our list of most affordable neighborhoods in Philadelphia. The average rent for a one-bedroom unit is roughly $500 less than the city’s average, making Oxford Circle a great option. It’s about 10 miles from downtown, so you’ll have the best city life without living in the city center. Oxford Circle has plenty of shops and restaurants along Castor Avenue and at the Roosevelt Mall.
9. Southwest Philadelphia
Average studio rent: $900 Average 1-bedroom rent: $1,250 Apartments for rent in Southwest Philadelphia
A well-known Philadelphia neighborhood, Southwest Philadelphia is the next area. Southwest Philadelphia is home to Bartram’s Garden, John Heinz National Wildlife Refuge at Tinicum, and Fort Mifflin, meaning there’s plenty to do throughout the week. You’ll find countless historic buildings and museums in Southwest Philadelphia, like the Simeone Foundation Automotive Museum, so make sure to explore the area’s charm. If you need to commute to work, there are many options, as buses and light rails stop throughout the area. Southwest Philadelphia is also home to the Philadelphia International Airport, so traveling is a breeze.
10. Bustleton
Average studio rent: $1,099 Average 1-bedroom rent: $1,276 Apartments for rent in Bustleton
The tenth neighborhood in Philadelphia is Bustleton. This area has a vibrant feeling with its popular restaurants and quirky shops. You can find parks like Pennypack Park and Lorimer Park, which are perfect for enjoying a sunny day in Philadelphia. Lincoln Highway runs through the area if you’re a renter commuting to work.
11. Richmond
Average studio rent: $750 Average 1-bedroom rent: $1,285 Apartments for rent in Richmond
Number 11 on our list of affordable neighborhoods in Philadelphia is Richmond. This affordable neighborhood is located northeast of downtown Philadelphia and is an awesome area if you’re looking for a neighborhood with a charming main street. Many cozy cafes and lively restaurants are on Aramingo Avenue and Richmond Street. Richmond is also close to parks like Campbell Square and Powers Park.
Methodology: Affordability based on whether a neighborhood has average studio and 1-bedroom rent prices under the city’s average. Average rental data from Rent.com in March 2024.
Have you ever thought, “Should I move to Albuquerque, NM?” As the largest city in the New Mexico, Albuquerque possesses a unique fusion of Native American, Hispanic, and Anglo influences, creating a one-of-a-kind culture. From the vibrant colors of the annual Balloon Fiesta painting the desert sky to the rugged Sandia Mountains providing a majestic backdrop, this city offers a lifestyle that seamlessly marries urban amenities with outdoor adventure. In this article, we’ll take a closer look at some of the pros and cons of living in Albuquerque, exploring its unique features and its potential challenges. By the end, you’ll have a better understanding of what it’s like to own a home or rent an apartment in this city and decide whether it’s the right place for you.
Albuquerque at a Glance
Walk Score: 43 | Bike Score: 61 | Transit Score: 29
Median Sale Price: $335,000 | Average Rent for 1-Bedroom Apartment: $1,120
Albuquerque neighborhoods | Houses for rent in Albuquerque | Apartments for rent in Albuquerque | Homes for sale in Albuquerque
Pro: Thriving culinary scene
The culinary scene in Albuquerque is a delightful blend of Native American, Hispanic, and Anglo influences, creating a unique and flavorful dining experience. Restaurants like Sadie’s of New Mexico and El Pinto have put the city on the map with their authentic New Mexican cuisine. The local obsession with green and red chile peppers adds a spicy kick to dishes, making dining out in Albuquerque an exciting culinary adventure.
Con: Hot summers
The desert climate of Albuquerque means experiencing hot summers, with temperatures often soaring above 90 degrees Fahrenheit. While the dry heat is more tolerable than the humid heat found in other regions, it can still be overwhelming, especially in July and August. This extreme weather can limit outdoor activities during the day and increase the reliance on air conditioning, impacting both comfort and utility bills.
Pro: Rich cultural heritage
Albuquerque is a city steeped in a rich tapestry of Native American and Hispanic cultures. Locals can attend exciting events like the annual Albuquerque International Balloon Fiesta. An attraction where hot air balloons paint the sky with vibrant colors, drawing visitors from around the globe. Old Town Albuquerque offers a glimpse into the city’s past with its historic adobe buildings and traditional New Mexican cuisine. This cultural melting pot provides residents with a unique and diverse living experience, unlike anywhere else.
Con: Occasional water shortages
Being in a desert, Albuquerque occasionally faces water shortages and drought conditions. Water conservation is a significant concern, affecting everything from residential gardening to public park maintenance. These conditions can lead to restrictions on water use, impacting some people’s daily lives and the overall greenery of the city. It’s a reminder of the environmental challenges posed by the region’s arid climate.
Pro: Outdoor recreation opportunities
Albuquerque is a haven for outdoor enthusiasts. Nestled in the Sandia Mountains’ foothills, it offers easy access to hiking, biking, and skiing. The Rio Grande River provides opportunities for kayaking and paddle boarding. Locals can enjoy the natural beauty of the landscape and engage in healthy, active lifestyles year-round. This access to diverse outdoor activities is a significant draw for people looking for a balance between urban living and nature.
Con: Intermittent air quality issues
Albuquerque sometimes grapples with air quality issues, particularly during wildfire season. The city’s location in a valley can trap smoke and pollutants, leading to poor air quality days. This situation can affect outdoor activities and pose health concerns for individuals with respiratory conditions. While not a daily problem, it’s an environmental con that residents must occasionally contend with.
Pro: Accessible healthcare options
The city is home to several top-rated hospitals and healthcare facilities, including the University of New Mexico Hospital. Albuquerque’s healthcare system offers a wide range of services and specialties, making it a regional hub for medical care. This accessibility to quality healthcare is a significant advantage for residents, ensuring that medical needs can be met promptly and efficiently.
Con: Public transportation limitations
With a Transit Score of 29, public transportation options are slim in this city. While Albuquerque has made strides in improving its public transportation system, it still faces limitations. The coverage area can be sparse, and frequency of service is not always adequate for the needs of all residents, especially those living outside the central areas. This situation can make it challenging for people without personal vehicles to navigate the city efficiently.
Pro: Innovative tech and research hub
Albuquerque is emerging as a hub for innovation, technology, and research, largely due to institutions like Sandia National Laboratories and the University of New Mexico. This environment fosters job opportunities in cutting-edge industries and attracts people from around the country. The city’s commitment to supporting startups and tech companies contributes to a dynamic and forward-thinking economy.
Con: Seasonal allergies
Residents of Albuquerque may find themselves battling seasonal allergies. The city’s desert landscape, combined with its diverse plant life, can lead to high pollen counts, especially in the spring. Juniper, mulberry, and elm trees are common allergens that can affect quality of life for allergy sufferers. While this is a natural aspect of the region’s flora, it’s a con for those sensitive to seasonal changes.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
In the heart of the American South, Mississippi exudes a charm and richness deeply rooted in its history, culture, and natural beauty. Known as the “Magnolia State,” it beckons with its lush landscapes, winding rivers, and warm hospitality. Its cities, such as the historic streets of Natchez and the bustling capital of Jackson, offer a blend of Southern charm and contemporary living. In this ApartmentGuide article, we’ll dive into the pros and cons of living in Mississippi, providing insights to help you navigate life in this unique state.
Renting in Mississippi snapshot
1. Pro: Rich cultural heritage
Mississippi’s rich cultural heritage is deeply rooted in its vibrant music scene, including the birthplace of blues and rock ‘n’ roll legends such as B.B. King and Elvis Presley. The state’s literary legacy shines with luminaries like William Faulkner and Eudora Welty, who drew inspiration from its landscapes and people. Additionally, Mississippi’s diverse culinary traditions, blending Southern, Creole, and Native American influences, offer a flavorful tapestry of dishes unique to the region.
2. Con: Weather extremes
Mississippi’s climate can be characterized by its high humidity and frequent thunderstorms, contributing to its reputation for experiencing extreme weather conditions. Tornadoes pose a significant threat, particularly during the spring months, with the state falling within the infamous “Tornado Alley” region of the United States. Moreover, the state is susceptible to tropical storms and hurricanes, which can bring heavy rainfall, flooding, and strong winds, impacting communities along the Gulf Coast.
3. Pro: Affordable cost of living
With one of the lowest costs of living in the United States, Mississippi offers an appealing choice for those seeking to maximize their budget. Housing, groceries, and utilities come at notably lower prices compared to the national average. Even in Jackson, the state’s largest city, living expenses remain significantly more affordable, with a median home sale price of $85,000 and a one-bedroom apartment renting for $900.
4. Con: Limited job opportunities
Limited job opportunities in Mississippi can present challenges for residents seeking employment, particularly in certain industries and rural areas. The state’s economy is heavily reliant on sectors such as agriculture, manufacturing, and healthcare, which may not always offer a wide range of career options.
5. Pro: Natural beauty and outdoor activities
With picturesque landscapes ranging from lush forests to serene rivers and expansive coastlines along the Gulf of Mexico, there’s a lot to uncover in Mississippi. Outdoor enthusiasts can enjoy a plethora of recreational activities, including hiking, fishing, boating, and birdwatching in the state’s numerous parks, wildlife refuges, and scenic trails. The diverse ecosystems provide opportunities for residents to immerse themselves in nature and enjoy a fulfilling lifestyle.
6. Con: Limited public transportation
Mississippi’s public transportation infrastructure is relatively limited, with many areas relying heavily on personal vehicles for transportation. The city of Jackson may have bus systems, but the transit score is 18, meaning coverage can be sparse and schedules infrequent compared to more densely populated areas.
7. Pro: Warm community and hospitality
Mississippi’s reputation for warm hospitality and friendly communities extends beyond mere politeness; it embodies a genuine sense of belonging. Whether it’s sharing a meal with neighbors, participating in local events, or simply striking up a conversation, the welcoming atmosphere in Mississippi creates strong bonds and lasting friendships.
8. Con: Heat and humidity
Mississippi’s climate is characterized by its high temperatures and humidity, particularly during the summer months, often leading to sweltering conditions. With average summer highs in the upper 80s to low 90s Fahrenheit and humidity levels frequently exceeding 70%, the oppressive heat can be challenging to endure.
9. Pro: Vibrant culinary scene
Mississippi’s culinary scene is a delight, featuring soul food, seafood, and barbecue. The state’s rich agricultural heritage influences its cuisine, with local specialties like catfish, sweet potatoes, and pecan pie celebrated in local eateries and festivals like the Crawfish Cook-Off.
10. Con: Infrastructure concerns
Mississippi’s infrastructure confronts significant hurdles, encompassing aging roads and bridges alongside sparse public transportation networks. Particularly in rural regions, the shortcomings in infrastructure can lead to insufficient access to critical services such as healthcare and education. Reflecting these concerns, Mississippi received a discouraging D+ grade on its 2020 infrastructure report card.
11. Pro: Historic architecture
Mississippi is adorned with an array of historic architecture, such as the picturesque Victorian homes of the Columbus Historic District, and the grandeur of the Old Capitol Museum in Jackson, a stunning example of Greek Revival architecture. These iconic structures stand as enduring symbols of Mississippi’s rich history and cultural legacy, inviting visitors to step back in time and marvel at the architectural craftsmanship of eras gone by.
12. Con: Mosquitoes and ticks
Mississippi’s warm and humid climate creates an ideal environment for various insects, including mosquitoes and ticks, which can be a nuisance for residents. During the summer months, swarms of mosquitoes can make outdoor activities uncomfortable, while encounters with ticks pose potential health risks. You’ll want to take the necessary precautions when moving to this state.
Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
As we head into peak home-buying season, signs of life have begun to spring up in the housing market.
Even so, still-high mortgage rates and home prices amid historically low housing stock continue to put homeownership out of reach for many.
Moreover, the National Association of Realtors agreed to a monumental $418 million settlement on March 15 following a verdict favoring home sellers in a class action lawsuit. Still subject to court approval, the settlement requires changes to broker commissions that will upend the buying and selling model that has been in place for years.
Housing Market Forecast for 2024
Elevated mortgage rates, out-of-reach home prices and record-low housing stock are the perennial weeds that experts say hopeful home buyers can expect to contend with this spring—and beyond.
“The housing market is likely to continue to face the dual affordability constraints of high home prices and elevated interest rates in 2024,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in an emailed statement. “Hotter-than-expected inflation data and strong payroll numbers are likely to apply more upward pressure to mortgage rates this year than we’d previously forecast.”
Despite ongoing affordability hurdles, Fannie Mae forecasts an increase in home sales transactions compared to last year. Experts also anticipate a slower rise in home prices this year compared to recent years, but price fluctuations will continue to vary regionally and depend strongly on local market supply.
U.S. home prices declined in January for the third consecutive month due to high borrowing costs, according to the latest S&P CoreLogic Case-Shiller Home Price Index. But prices year-over-year jumped 6%—the fastest annual rate since 2022.
Chief economist at First American Financial Corporation Mark Fleming predicts a “flat stretch” ahead.
“If the 2020-2021 housing market was too hot, then the 2023 market was probably too cold, but 2024 won’t yet be just right,” Fleming said in his 2024 forecast.
Will the Housing Market Finally Recover in 2024?
For a housing recovery to occur, several conditions must unfold.
“For the best possible outcome, we’d first need to see inventories of homes for sale turn considerably higher,” says Keith Gumbinger, vice president at online mortgage company HSH.com. “This additional inventory, in turn, would ease the upward pressure on home prices, leveling them off or perhaps helping them to settle back somewhat from peak or near-peak levels.”
And, of course, mortgage rates would need to cool off—which experts say is imminent despite rates edging back up toward 7%. For the week ending April 11, the 30-year fixed mortgage rate stood at 6.88%, according to Freddie Mac.
However, when mortgage rates finally go on the descent, Gumbinger says don’t hope they cool too quickly. Rapidly falling rates could create a surge of demand that wipes away any inventory gains, causing home prices to rebound.
“Better that rate reductions happen at a metered pace, incrementally improving buyer opportunities over a stretch of time, rather than all at once,” Gumbinger says.
He adds that mortgage rates returning to a more “normal” upper 4% to lower 5% range would also help the housing market, over time, return to 2014-2019 levels. Yet, Gumbinger predicts it could be a while before we return to those rates.
Nonetheless, Kuba Jewgieniew, CEO of Realty ONE Group, a real estate brokerage company, is optimistic about a recovery this year.
“[W]e’re definitely looking forward to a better housing market in 2024 as interest rates start to settle around 6% or even lower,” says Jewgieniew.
NAR Settlement Rocks the Residential Real Estate Industry
Following years of litigation, the National Association of Realtors (NAR) has agreed to pay $418 million to settle a series of antitrust lawsuits filed in 2019 on behalf of home sellers.
The plaintiffs claimed that the leading national trade association for real estate brokers and agents “conspired to require home sellers to pay the broker representing the buyer of their homes in violation of federal antitrust law.”
Though the landmark settlement is subject to court approval, most consider it a done deal.
The settlement requires NAR to enact new rules, including prohibiting offers of broker compensation on multiple listing services (MLS), the private databases that allow local real estate brokers to publish and share information about residential property listings. The rule is set to take effect in mid-July, once the settlement receives judge approval.
Moreover, sellers will no longer be required to pay buyer broker commissions and real estate agents participating in the MLS must establish written representation agreements with their buyer clients.
NAR denies any wrongdoing and maintains that its current policies benefit buyers and sellers. The organization believes it’s not liable for seller claims related to broker commissions, stating that it has never set commissions and that commissions have always been negotiable.
How Will the New Rules Impact the Buying and Selling Process?
Per the settlement’s terms, the costs associated with buying and selling a home are set to change dramatically.
“The primary things that will change are the decoupling of the seller commission and the buyer commission in the MLS,” says Rita Gibbs, a Realtor at Realty One Group Integrity in Tucson. “It’s gonna cause some chaos.”
While sellers will no longer be able to offer broker compensation in the MLS, there’s no rule prohibiting off-MLS negotiations. Because of this, Gibbs suspects buyers and sellers will continue offering broker compensation off the MLS.
The Department of Justice confirmed it will permit listing brokers to display compensation details on their websites. However, buyer agents will need to undergo the tedious task of visiting countless broker websites to find who’s offering what.
Michael Gorkowski, a Virginia-based real estate agent with Compass, is also trying to figure out how to manage the potential ruling.
“We often work with buyers for many months and sometimes years before they find exactly what they’re looking for,” Gorkowski says. “So in a case where a seller isn’t offering a co-broker commission, we will have to negotiate that the buyer pays an agreed-upon commission prior to starting their search.”
The Changes Will Impact These Home Buyers Most
“In the short term, it is absolutely going to injure buyers, especially FHA and VA buyers,” Gibbs says. “With rare exception, these buyers are not in a position to pay for their own agent.”
Gibbs says that if sellers don’t offer compensation, many buyers who can’t otherwise afford to pay a broker will choose to go unrepresented.
Gorkowski notes that veterans taking out VA loans face a unique challenge under the new rules. “[P]er the VA requirements, buyers cannot pay so it must be negotiated with the seller for now.”
As a result, NAR is calling on the U.S. Department of Veterans Affairs to revise its policies prohibiting VA buyers from paying broker commissions. Even so, there’s skepticism that the federal government will be able to implement changes in time for the July deadline.
Gibbs and Gorkowski are among the many agents especially concerned about first-time home buyers. After July, first-time and VA buyers will be required to sign a buyer-broker agreement stating that they will compensate their broker—but Gibbs says many won’t have the means to do so.
In this situation, agents would likely only show buyers homes where sellers are offering compensation.
“This is a very troubling situation,” Gorkowski says.
Housing Inventory Forecast for 2024
With many homeowners “locked in” at ultra-low interest rates or unwilling to sell due to high home prices, demand continues to outpace housing supply—and likely will for a while—even as some homeowners may finally be forced to sell due to major life events such as divorce, job changes or a growing family.
“I don’t expect to see a meaningful increase in the supply of existing homes for sale until mortgage rates are back down in the low 5% range, so probably not in 2024,” says Rick Sharga, founder and CEO of CJ Patrick Company, a market intelligence and business advisory firm.
Housing stock remains near historic lows—especially entry-level supply—which has propped up demand and sustained ultra-high home prices. Here’s what the latest home values look like around the country.
Yet, some hopeful housing stock signs have begun to sprout:
Existing inventory is showing signs of loosening as impatient buyers and sellers have begun to accept the reality of mortgage rates oscillating between 6% and 7%.
Home-builder outlook also continues to get sunnier, trending back up amid declining mortgage rates and better building conditions.
The most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), which tracks builder sentiment, saw a fourth consecutive monthly rise, surpassing a crucial threshold with an increase from 48 to 51 in March. A reading of 50 or above means more builders see good conditions ahead for new construction.
At the same time, new single-family building permits ticked up 1% in February—the 13th consecutive monthly increase—according to the latest data from the U.S. Census Bureau and U.S. Department of Housing and Urban Development (HUD).
Residential Real Estate Stats: Existing, New and Pending Home Sales
Though some housing market data indicates signs of growth are in store this spring home-buying season, persistently high mortgage rates may hinder activity from fully flourishing.
Here’s what the latest home sales data has to say.
Existing-Home Sales
Existing-home sales came to life in February, shooting up 9.5% from the month before, according to the latest data from the NAR. Sales dipped 3.3% from a year ago.
Experts attribute the monthly jump to a bump in inventory.
“Additional housing supply is helping to satisfy market demand,” said Lawrence Yun, chief economist at NAR, in the report.
Existing inventory rose 5.9%—logging 1.07 million unsold homes at the end of February. However, there are still only 2.9 months of inventory at the current sales pace. Most experts consider a balanced market falling between four and six months.
Meanwhile, existing home prices continue to soar to unprecedented heights, reaching $384,500, which marks the eighth consecutive month of yearly price increases and a February median home price record.
New Home Sales
Sales of newly constructed single-family houses ticked down by a nominal 0.3% compared to January, but outpaced February 2023 sales by 5.9%, according to the latest U.S. Census Bureau and HUD data.
Amid a high percentage of homeowners still locked in to low mortgage rates, home builders have been picking up the slack.
“New construction continues to be an outsized share of the housing inventory,” said Dr. Lisa Sturtevant, chief economist at Bright MLS, in an emailed statement.
Sturtevant notes that declining new home prices are coming amid a recent trend of builders introducing smaller and more affordable homes to the market.
The median price for a new home in February was $400,500, down 7.6% from a year ago.
Source: U.S. Census Bureau and U.S. Department of Housing and Urban Development
Pending Home Sales
NAR’s Pending Homes Sales Index rose 1.6% in February from the month prior even as mortgage rates approached 7% by the end of the month. Pending transactions declined 7% year-over-year.
A pending home sale marks the point in the home sales transaction when the buyer and seller agree on price and terms. Pending home sales are considered a leading indicator of future closed sales.
The Midwest and South saw monthly transaction gains while the Northeast and West saw declines due to affordability challenges in those higher-cost regions.
“While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year,” said Yun, in the report.
Ongoing Affordability Challenges Could Throw Cold Water on Spring Home-Buying Hopes
Though down from its 2023 high of 7.79%, the average 30-year fixed mortgage rate in 2024 remains well over 6% amid rising home values. As a result, home buyers continue to face affordability challenges.
According to data from its first-quarter 2024 U.S. Home Affordability Report, property data provider Attom found that median-priced single-family homes remain less affordable than the historical average in over 95% of U.S. counties.
For one, the data uncovered that expenses are eating up more than 32% of the average national wage. Common lending guidelines require monthly mortgage payments, property taxes and homeowners insurance to comprise 28% or less of your gross income.
At the same time, home prices and homeownership expenses continue to outpace wage growth.
Consequently, the latest expense-to-wage ratio is hovering at one of the highest points over the past decade, according to the Attom report, despite some slight affordability improvements over the last two quarters.
“Affording a home remains a financial stretch, or a pipe dream, for so many households,” said Rob Barber, CEO at Attom.
Pro Tips for Buyers and Sellers
Here are some expert tips to increase your chances for an optimal outcome in this tight housing market.
Pro Tips for Buying in Today’s Real Estate Market
Hannah Jones, a senior economic research analyst at Realtor.com, offers this expert advice to aspiring buyers:
Know your budget. Instead of focusing on price, figure out how much you can afford as a monthly payment. Your monthly housing payment is influenced by the price of the home, your down payment, mortgage rate, loan term, home insurance and property taxes.
Be flexible about home size and location. Perhaps your budget is sufficient for a small home in your perfect neighborhood, or a larger, newer home further out. Understanding your priorities and having some flexibility can help you move quickly when a suitable home enters the market.
Keep an eye on the market where you hope to buy. Determine the area’s available inventory and price levels. Also, pay attention to how quickly homes sell. Not only will you be tuned in when something great hits the market, you can feel more confident moving forward with purchasing a well-priced home. A real estate agent can help with this.
Don’t be discouraged. Purchasing a home is one of the largest financial decisions you’ll ever make. Approaching the market confidently, armed with good information and grounded expectations will take you far. Don’t let the hustle of the market convince you to buy something that’s not in your budget, or not right for your lifestyle.
Pro Tips for Selling in Today’s Real Estate Market
Gary Ashton, founder of The Ashton Real Estate Group of RE/MAX Advantage, has this expert advice for sellers:
Research comparable home prices in your area. Sellers need to have the most up-to-date pricing intel on comparable homes selling in their market. Know the market competition and price the home competitively. In addition, understand that in some price points it’s a buyer’s market—you’ll need to be prepared to make some concessions.
Make sure your home is in top-notch shape. Homes need to be in great condition to compete and create a strong “online curb appeal.” Well-maintained homes and attractive front yards are major features that buyers look for.
Work with a local real estate agent. A real estate agent or team with a strong local marketing presence and access to major real estate portals can offer significant value and help you land a great deal.
Don’t put off issues that require attention. Prepare the home by making any repairs or improvements. Removing any objections that buyers may see helps focus the buyer on the positive attributes of the home.
Will the Housing Market Crash in 2024?
Despite some areas of the country experiencing monthly price declines, the likelihood of a housing market crash—a rapid drop in unsustainably high home prices due to waning demand—remains low for 2024.
“[T]he record low supply of houses on the market protects against a market crash,” says Tom Hutchens, executive vice president of production at Angel Oak Mortgage Solutions, a non-QM lender.
Moreover, experts point out that today’s homeowners stand on much more secure footing than those coming out of the 2008 financial crisis, with many borrowers having substantial home equity.
“In 2024, I expect we’ll see home appreciation take a step back but not plummet,” says Orphe Divounguy, senior macroeconomist at Zillow Home Loans.
This outlook aligns with what other housing market watchers expect.
“Comerica forecasts that national house prices will rise 2.9% in 2024,” said Bill Adams, chief economist at Comerica Bank, in an emailed statement.
Divounguy also notes that several factors, including Millennials entering their prime home-buying years, wage growth and financial wealth are tailwinds that will sustain housing demand in 2024.
Even so, with fewer homes selling, Dan Hnatkovskyy, co-founder and CEO of NewHomesMate, a marketplace for new construction homes, sees a price collapse within the realm of possibility, especially in markets where real estate investors scooped up numerous properties.
“If something pushes that over the edge, the consequences could be severe,” said Hnatkovskyy, in an emailed statement.
Will Foreclosures Increase in 2024?
In February, total foreclosure filings were down 1% from the previous month but up 8% from a year ago, according to Attom.
“These trends could signify evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices,” said Barber, in a report.
Lenders began foreclosure on 22,575 properties in February, up 4% from the previous month and 11% from a year ago. Meanwhile, real estate-owned properties, or REOs, which are homes unsold at foreclosure auctions and taken over by lenders, spiked year-over-year in three states: South Carolina (up 51%), Missouri (up 50%) and Pennsylvania (up 46%).
Despite foreclosure activity trending up nationally and certain areas of the country seeing notable annual increases in REOs, experts generally don’t expect to see a wave of foreclosures in 2024.
“Foreclosure activity is still only at about 60% of pre-pandemic levels … and isn’t likely to be back to 2019 numbers until sometime in mid-to-late 2024,” says Sharga.
The biggest reasons for this, Sharga explains, are the strength of the economy—we’re still seeing low unemployment and steady wage growth—along with excellent loan quality.
Massive home price growth in homeowner equity over the past few years has also helped reduce foreclosures.
Sharga says that some 80% of today’s homeowners have more than 20% equity in their property. So, while there may be more foreclosure starts in 2024—due in part to Covid-era mortgage relief programs phasing out—foreclosure auctions and lender repossessions should remain below 2019 levels.
When Will Be the Best Time To Buy a Home in 2024?
Buying a house—in any market—is a highly personal decision. Because homes represent the largest single purchase most people will make in their lifetime, it’s crucial to be in a solid financial position before diving in.
Use a mortgage calculator to estimate your monthly housing costs based on your down. But if you’re trying to predict what might happen next year, experts say this is probably not the best home-buying strategy.
“The housing market—like so many other markets—is almost impossible to time,“ Divounguy says. “The best time for prospective buyers is when they find a home that they like, that meets their family’s current and foreseeable needs and that they can afford.”
Gumbinger agrees it’s hard to tell would-be homeowners to wait for better conditions.
“More often, it seems the case that home prices generally keep rising, so the goalposts for amassing a down payment keep moving, and there’s no guarantee that tomorrow’s conditions will be all that much better in the aggregate than today’s.”
Divounguy says “getting on the housing ladder” is worthwhile to begin building equity and net worth.
Frequently Asked Questions (FAQs)
Will declining mortgage rates cause home prices to rise?
Declining mortgage rates will likely incentivize would-be buyers anxious to own a home to jump into the market. Expect this increased demand amid today’s tight housing supply to put upward pressure on home prices.
What will happen if the housing market crashes?
Most experts do not expect a housing market crash in 2024 since many homeowners have built up significant equity in their homes. The issue is primarily an affordability crisis. High interest rates and inflated home values have made purchasing a home challenging for first-time homebuyers.
Is it smart to buy real estate before a recession?
If you’re in a financial position to buy a home you plan to live in for the long term, it won’t matter when you buy it because you will live in it through economic highs and lows. However, if you are looking to buy real estate as a short-term investment, it will come with more risk if you buy at the height before a recession.
Welcome to Pennsylvania, a state steeped in history, brimming with diverse landscapes, and home to lively cities that offer unique living experiences. From the bustling metropolis of Philadelphia, known for its iconic landmarks, to the picturesque streets of Pittsburgh, a hub of innovation and creativity, there’s a lot to explore in this state. This ApartmentGuide article will take you through the pros and cons of living in Pennsylvania, so you can decide if this state is right for you.
Renting in Pennsylvania snapshot
1. Pro: Iconic historical sites
Pennsylvania is steeped in American history, home to well-known landmarks such as the Liberty Bell and Independence Hall in Philadelphia to the Gettysburg National Military Park in Gettysburg. These sites offer residents and visitors alike a unique opportunity to walk through the corridors of American history, experiencing the birthplace of the nation’s independence firsthand.
2. Con: Humid summers
Pennsylvania experiences high humidity levels during the summer months, creating discomfort for residents and impacting outdoor activities. The combination of the summer heat ranging from 70-90 degrees Fahrenheit, and high humidity levels can make outdoor excursions feel stifling and exhausting, requiring extra precautions to stay cool and hydrated.
3. Pro: Diverse landscapes
From the urban landscapes of Philadelphia and Pittsburgh to the scenic beauty of the Pocono Mountains and the shores of Lake Erie, Pennsylvania offers a diverse range of environments. This diversity allows for a multitude of outdoor activities, including hiking, skiing, and beach outings, catering to all sorts of preferences and lifestyles.
4. Con: Infrastructure challenges
Pennsylvania grapples with aging infrastructure, evident in its roads, bridges, and public transportation systems, which often suffer from disrepair and congestion. The state’s infrastructure report card is a C-, highlighting the urgent need for upgrades to address deficiencies and ensure public safety. These infrastructure challenges not only inconvenience residents with frequent road closures and delays but also pose risks to motorists and commuters.
5. Pro: Educational opportunities
Pennsylvania is home to some of the nation’s top universities, including the University of Pennsylvania, Carnegie Mellon University, and Penn State. These institutions not only provide excellent educational opportunities but also contribute to vibrant local economies and cultural scenes throughout the state.
6. Con: Property taxes
Pennsylvania imposes a relatively high property tax rate of 1.36%, surpassing the national average of 0.99%, which can significantly impact homeowners’ financial burden. This disparity is worth noting for those considering transitioning from renting to homeownership, as it adds to the overall cost of owning property in the state. This can affect affordability and the cost of living for residents, making it challenging for some to maintain homeownership.
7. Pro: Culinary diversity
The state’s culinary scene is a reflection of its cultural diversity, offering everything from traditional Pennsylvania Dutch dishes to modern American cuisine. Cities like Philadelphia are renowned for their food, including the iconic Philly cheesesteak, attracting food lovers from all over.
8. Con: Air quality issues
Industrial activities and traffic congestion contribute to air quality issues in certain areas of Pennsylvania, particularly in its larger cities like Philadelphia and Pittsburgh. These cities are known for their industrial history, which has left a legacy of pollution and environmental challenges. Poor air quality can have significant impacts on residents’ health, especially those with respiratory conditions.
With year-round sunshine, warm weather, stunning mountain views, and desert landscapes, Phoenix, AZ, is a wonderful city to call home. From its Southwestern vibe, colorful neighborhoods, and outdoor activities, it’s no surprise that 1.6 million people live in the “Valley of the Sun.”
If you’re looking to rent an apartment in Phoenix, you’ll find that the average rent for a studio is $1,125 while a one-bedroom apartment is $1,237. But those numbers might not fit your budget. ApartmentGuide is here to help with a list of the most affordable neighborhoods in Phoenix to rent this year.
8 Affordable Neighborhoods in Phoenix, AZ
From Lake Biltmore Village to Roosevelt, Phoenix has affordable neighborhoods that fit your budget. The best part is that they’re all under Phoenix’s average rent for studio and one-bedroom units. Let’s see what Phoenix neighborhoods made the list.
1. Lake Biltmore Village 2. Roosevelt 3. Citrus Acres 4. Alhambra 5. North Mountain 6. West Phoenix 7. South Mountain 8. Sunnyslope
Read on to see what each neighborhood has to offer its residents.
1. Lake Biltmore Village
Average studio rent: $853 Average 1-bedroom rent: $979 Apartments for rent in Lake Biltmore Village
Lake Biltmore Village is the most affordable neighborhood in Phoenix. The average rent for a one-bedroom unit is $979, almost $300 less than Phoenix’s average. There are many reasons to love living in Lake Biltmore Village, from attractions like the beautiful Lake Biltmore to green spaces like Cave Creek Park – Cholla. If you’re looking for restaurants and shops, you can find a lot along Peoria Avenue. For renters living in Phoenix without a car, there are two bus stops in Lake Biltmore Village.
2. Roosevelt
Average studio rent: $799 Average 1-bedroom rent: $1,099 Apartments for rent in Roosevelt
Roosevelt is a bustling area that’s just north of downtown Phoenix. This affordable neighborhood has lots of attractions such as the Margaret T. Hance Park, which is home to The Japanese Friendship Garden of Phoenix, the Historic Ellis-Shackelford House, and Great Arizona Puppet Theater. Roosevelt has numerous restaurants and bars throughout the neighborhood, like The Vig, Pita Jungle, and Vovomeena.
3. Citrus Acres
Average studio rent: $975 Average 1-bedroom rent: $1,100 Apartments for rent in Citrus Acres
With an average one-bedroom rent of $1,100, Citrus Acres is the third-most affordable neighborhood in Phoenix. This neighborhood is an awesome option to consider if you’re looking for a more residential area. There are plenty of shopping centers and parks nearby like Desert Palms Power Center and Old Crosscut Canal.
4. Alhambra
Average studio rent: $1,002 Average 1-bedroom rent: $1,114 Apartments for rent in Alhambra
Alhambra is the fourth-most affordable neighborhood in Phoenix and is north of downtown. This neighborhood is an excellent option if you want access to plenty of shops and restaurants. For example, you can easily access the Christown Spectrum Mall, Cielito Park, and the Grand Canyon University campus. Alhambra is also home to the Uptown Farmers’ Market, held on Wednesdays and Saturdays, where you can check out the local vendors.
5. North Mountain
Average studio rent: $1,010 Average 1-bedroom rent: $1,122 Apartments for rent in North Mountain
Just about 10 miles from downtown, North Mountain is a stellar neighborhood if you want to live outside the hustle and bustle. It’s also a great area if you want quick access to the outdoors. For example, you can access North Mountain Park, Phoenix Mountains Preserve, and Cave Creek Park. North Mountain has other attractions, like the Martin Auto Museum and Event Center, the Castles N’ Coasters amusement park, and Cave Creek Golf Course.
6. West Phoenix
Average studio rent: $994 Average 1-bedroom rent: $1,160 Apartments for rent in West Phoenix
Next up is West Phoenix, the sixth-most affordable neighborhood in Phoenix. West Phoenix is a quaint neighborhood near parks, restaurants, and attractions. Make sure to enjoy the outdoors at Falcon Park or grab a meal at one of the neighborhood restaurants on Van Buren Street. There’s something for everyone living in West Phoenix.
7. South Mountain
Average studio rent: $853 Average 1-bedroom rent: $1,199 Apartments for rent in South Mountain
Nestled south of downtown, South Mountain is the seventh-most affordable neighborhood in Phoenix. South Mountain has an outdoorsy atmosphere with it’s easy access to South Mountain Park, where you can find numerous trails and lookouts. You can also check out some of South Mountain’s attractions, like the Mystery Castle, Raven Golf Club, and the Rio Salado South Basin Trail.
8. Sunnyslope
Average studio rent: $795 Average 1-bedroom rent: $1,225 Apartments for rent in Sunnyslope
Sunnyslope takes the eighth and final spot on our list of most affordable neighborhoods in Phoenix. The average rent for a one-bedroom unit is roughly $10 less than the city’s average, so you’ll still save a bit over time. It’s about 10 miles from downtown, so you’ll have the best city life without living in the city center. Sunnyslope is home to several bars and restaurants, like North Mountain Brewing Company and Little Miss BBQ Sunnyslope. There’s always something new to explore in this charming neighborhood..
Methodology: Affordability based on whether a neighborhood has average studio and 1-bedroom rent prices under the city’s average. Average rental data from Rent.com in March 2024.
Have you been thinking, “Should I move to Oklahoma City, OK?” As the capital of Oklahoma, this city boasts a unique blend of Midwestern charm, Southern hospitality, and burgeoning urban development. However, deciding whether to move to a new city involves numerous factors, from job opportunities and cost of living to quality of life and community amenities. In this article, we’ll explore the pros and cons of making Oklahoma City your new home base, to help you decide if Sooner State’s capital is the right fit for you. Let’s jump in.
Oklahoma City at a Glance
Walk Score: 34 | Bike Score: 40 | Transit Score: 17
Median Sale Price: $260,500 | Average Rent for 1-Bedroom Apartment: $945
Oklahoma City neighborhoods | houses for rent in Oklahoma City | apartments for rent in Oklahoma City | homes for sale in Oklahoma City
Pro: Affordable cost of living
Oklahoma City stands out for its affordable cost of living. Residents enjoy lower housing costs about $200,000 less than the national average. This makes it easier to find a spacious home without breaking the bank. Groceries, utilities, and transportation costs are also reasonably priced. This affordability allows for a comfortable lifestyle, with extra budget for leisure and savings. It’s a significant draw for individuals and families looking to maximize their financial well-being.
Con: Limited public transportation options
One of the challenges of living in Oklahoma City is the limited public transportation options. With a Transit Score of 15, the city relies heavily on cars, making it difficult for those without personal vehicles to navigate. While there are bus services available, the coverage and frequency may not meet everyone’s needs. This can lead to challenges in accessing work, education, and healthcare for some residents, emphasizing the need for a personal vehicle in this city.
Pro: Exciting cultural scene
Oklahoma City boasts a vibrant cultural scene that caters to a variety of interests. For example, the Oklahoma City Museum of Art features an impressive collection of American and European art, including works by renowned artists such as Dale Chihuly and Georgia O’Keeffe. Additionally, the Oklahoma City Philharmonic Orchestra and the Oklahoma City Ballet offer world-class performances that showcase the city’s thriving performing arts scene. Residents can also explore the city’s diverse cultural heritage through events like the annual Red Earth Festival, which celebrates Native American art, dance, and music. Whether attending a gallery opening, catching a live performance, or exploring the city’s historic districts, locals always have access to a dynamic and enriching cultural experience.
Con: Storm risk and weather extremes
Residents of Oklahoma City must prepare for weather extremes. Summers can be scorching hot, while winters bring cold snaps that can be quite harsh. The city is also located in Tornado Alley, making severe storms and tornadoes a real risk. These weather conditions can affect daily life and require residents to be prepared for sudden changes and potential natural disasters.
Pro: Expansive green spaces
Oklahoma City offers an abundance of green spaces, providing residents with a breath of fresh air amidst urban life. The Myriad Botanical Gardens and Crystal Bridge Tropical Conservatory offer a lush oasis in the heart of downtown Oklahoma City. The area features beautiful gardens, walking paths, and a tropical rainforest habitat. Additionally, Lake Hefner and Lake Overholser provide scenic settings for boating, fishing, and picnicking, with miles of shoreline and surrounding parkland to explore. Whether you’re taking a leisurely stroll through botanical gardens or paddling on a tranquil lake, there’s always a way to enjoy the outdoors in this city.
Con: Sparse nightlife
For those seeking a bustling nightlife, Oklahoma City may fall short. While there are entertainment options in areas like the Bricktown district, the nightlife scene is not as extensive as in larger cities. This may be a drawback for people who enjoy a vibrant night out. As a result, residents seeking vibrant nightlife experiences may need to travel to neighboring cities or explore alternative entertainment options within the city.
Oklahoma City is known for its strong sense of community. Neighborhoods often host events and activities that bring locals together, fostering a close-knit environment. This sense of belonging is further strengthened by the city’s friendly and welcoming residents. Whether you’re new to the area or have lived here for years, the community spirit makes it easy to feel at home.
Con: Limited international cuisine
While Oklahoma City has a growing food scene, it still has room to grow in terms of international cuisine. Those looking for a wide variety of global dining options might find the selection somewhat limited compared to larger, more diverse cities. However, the city is gradually becoming more cosmopolitan, with new restaurants opening that offer diverse culinary experiences.
Pro: Low traffic congestion
Compared to larger metropolitan areas, Oklahoma City benefits from low traffic congestion. This makes commuting more manageable and less time-consuming for residents. The ease of getting around contributes to a more relaxed lifestyle, with less stress and more time for personal activities. It’s a significant advantage for those tired of the hustle and bustle of more crowded cities.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.