Are mortgage rates creating new opportunities for homebuyers?

"Phil Crescenzo Jr., Southeast division vice president for Nation One Mortgage Corp., said that stable rates near 6% are poised to unlock greater affordability for millions of U.S. households. He pointed to data published over the summer by the National Association of Realtors (NAR), which showed that a 6% rate would make the median-priced home affordable to an additional 5.5 million households. NAR estimated that 10% of these households would buy a home in the next 18 months if rates reached 6%."

"I have seen some activity with the recent rate reductions, but not a rapid pace, Crescenzo told HousingWire via email. I believe if someone has a 3% mortgage rate, a rate that at least starts with a 5 does not seem as drastic. This actually does move people more than the actual savings of another .125% in a long-term fixed rate. I see this in consumer behaviors often."

"I'm really excited about this, Ishbia said. Whether it happens in one month or in one year, the fact that they're looking at it and finding ways to maybe say, Hey, there's some excessive LLPAs that are impacting homeownership, maybe we can make some changes?' Whether it's on a certain product, certain LTV, certain FICO bucket, who knows? But the fact that they're looking at it is a positive sign for all of us. We've been wanting change."

Stable mortgage rates near 6% would make the median-priced home affordable to an additional 5.5 million U.S. households, and NAR estimated 10% of those households might buy within 18 months if rates hit 6%. Mortgage professionals report modest increases in activity after recent rate reductions, noting psychological thresholds influence behavior more than fractional rate differences. The FHFA enlisted Barry Habib to review Fannie Mae loan-level price adjustments to identify potentially excessive LLPAs. Industry leaders praised the review, and risk-based LLPAs were noted to add thousands of dollars in loan costs depending on borrower credit profiles.

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