First-Time Buyers Rush to Lock in Low Mortgage Rates

Record low mortgage rates are drawing a new wave of first-time home buyers to the market, Freddie Mac reports. “In August, activity among first-time home buyers rose 19% from July to the highest monthly level ever for Freddie Mac,” says the mortgage giant’s Chief Economist Sam Khater, adding that the rebound “has come at a critical time for the economy.”
Since the beginning of the year, mortgage rates have dropped more than 80 basis points, the National Association of REALTORS® reports. As such, the qualifying income to buy a starter home has dropped by 10% to nearly $43,000. Further, the monthly mortgage payment dropped by $100.
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