Mortgage rates
mostly stabilized in the week ending Aug. 15, following last week’s significant drop.
30-year fixed-rate mortgages fell slightly to 6.28%. One basis point equals one one-hundredth of a percentage point.
While rates may be stabilizing, home prices are still on the rise across the nation.
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Median home prices reach record highs in select metro areas
The selling prices of single-family existing homes surged in the second quarter of 2024 in 89% of monitored metro areas, according to the National Association of Realtors (NAR).
In these regions, three metros experienced price increases of almost 20%: Racine, WI (19.8%), Glen Falls, NY (19.8%), and El Paso, TX (19.2%). The national median single-family existing-home price rose by 4.9% from the same period last year, reaching $422,100.
Seven of the top 10 most expensive metros at the end of Q2 are in California. The priciest metro measured was San Jose-Sunnyvale-Santa Clara, where the median home price jumped 11.6% to a staggering $2,008,000.
NAR Chief Economist Lawrence Yun noted that this is advantageous for homeowners who continue to see their equity grow, while prospective buyers face an even tougher climb up the economic ladder. “It’s challenging for those looking to purchase a home as the necessary income to qualify has nearly doubled from just a few years ago,” he said.
In fact, the national median home sale price is $100,000 higher than in Q2 2019, which the St. Louis Federal Reserve estimates at $322,500. That’s a rise of almost 31% in just five years. To provide additional context, the average 30-year mortgage rate never exceeded 4.65% throughout 2019, compared to 2024’s peak (so far) of 7.448% in May.
While price growth may appear daunting, it is slowing down
Those in the market to purchase a home may find these figures discouraging, but price growth is gradually decelerating. The national median home price increased by 4.9% in Q2, compared to 5% in Q1. And while sale prices rose in 89% of monitored metro areas in Q2, this is down from 93% in Q1.
10% of monitored metro markets actually saw price decreases, up from 7% in Q1.
If you’re planning to buy a home, there are actions you can take now to enhance affordability — specifically, exploring for
the best rate
.
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