How to negotiate a lower home price in today's economy, according to experts
Summary
Mortgage rates have become more unstable this year, rising from about 5.87% in February to 6.87% in early August. This change has made buying a home more expensive, but it also gives buyers a chance to negotiate a lower home price or get sellers to cover some mortgage costs.Key Facts
- The average 30-year mortgage rate dropped to 5.87% in February 2024 but increased to 6.87% by early August.
- A 1% rise in mortgage rates adds about $245 to the monthly payment on a $375,000 loan.
- Rate increases have caused some buyers to pause their home buying, reducing competition.
- With fewer buyers, sellers may accept lower offers or give other concessions.
- Buyers can ask sellers to pay for a mortgage rate buydown, which lowers the buyer’s interest rate temporarily or permanently.
- A temporary buydown can reduce the interest rate by 2% in the first year and 1% in the second year.
- Negotiating a buydown can save buyers more money on monthly payments than just asking for a price cut.
- Mortgage applications fell by 6.4% in late July 2024 when rates reached their highest point since August 2023.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
