What Mortgage Rate Will Get More Buyers Moving?

About 5.5 million more households would be able to afford a home if rates drop to this magic number. NAR’s latest housing forecast shows when the market may get there and where you can find opportunities for business growth.

Home buyers wishing for lower mortgage interest rates may eventually get their wish, but for now, they’ll have to decide whether it’s better to wait or jump into the market.

Buyers remain highly sensitive to interest rates. Many blame today’s rates for a subpar selling season, and economists say that when rates begin to fall, a wave of pent-up demand could be unleashed, potentially driving a surge in home sales.

National Association of REALTORS® economists say a 30-year fixed rate mortgage of 6% would make the median-priced home affordable for about 5.5 million more households—including 1.6 million renters.

Over 200 Suburbs Have More Renters Than Owners

Renters outnumber homeowners in 203 suburbs across the nation’s 20 largest metros, according to Point2Homes.

In five years alone (2018-2023), 15 suburbs flipped from having a majority of owners to a majority of renters. This includes the Philadelphia suburb of King of Prussia, which went from having a 41.1% renter share to a 52.0% share.

Other Pennsylvania suburbs that have more renters than owners include:

West Chester (65.1% renters)
Coatesville (64.2%)
Chester (59.1%)
Darby (50.2%)

Nepo-Homebuyers: Aside from Paychecks, Family Money Is the Most Common Source of Young People’s Down Payments

Nearly one-quarter (23.8%) of young Americans who recently bought a home used family money to help fund their down payment, according to a recent Redfin survey.

For this report, “family money” means either a cash gift from family or an inheritance. Roughly one in five (20.7%) young Americans–Gen Zers or millennials–who recently bought a home used a cash gift from family to help with their down payment, and roughly 11% used an inheritance.

There are also other ways Gen Zers and millennials get help from family: About 18% report they lived with family or friends to save money for their down payment.

Get the Latest Local Housing Market Data from Long and Foster's Market Conditions Report

Philadelphia region saw an 11% increase in total units sold in June compared to May.

Philadelphia Region Report

Atlantic County, NJ Report

Burlington County, NJ Report

Cape May County NJ Report

Ocean County, NJ Report

Mortgage Rates to Remain Mostly Unchanged After Stronger-Than-Expected Jobs Report

The June jobs report was stronger than expected. That means mortgage rates will tick up slightly today, but stay mostly unchanged. The strength of the latest jobs report rules out a July rate cut; however, for the second month in a row, the headline strength disguises underlying weakness–which leaves a September rate cut on the table.

The numbers: 147,000 jobs were added in June, more than the 110,000 expected by forecasters and 144,000 in May. Similarly, the unemployment rate declined to 4.12% from 4.24% despite expectations it would increase to 4.3%. For the first time since January, revisions to previous months were positive, adding 16,000 more jobs than earlier reported. The unemployment rate has been bouncing around between 4% and 4.2% for about a year, showing no sign of increasing.

Annual Home Price Appreciation in June Slowest Since March 2012

U.S. home prices decreased 0.1% in June compared with May but were up 1.7% compared with June 2024, according to First American’s latest House Price Index report.

That’s the slowest rate of annual home price appreciation since March 2012.

In addition, First American reports that it has revised down the home price growth figures reported in last month’s HPI by 0.2 percentage points, from +0.4% to +0.2%.

Mark Fleming, chief economist for First American, says although home prices nationally slowed further, we are possibly nearing a “Goldilocks” point that could help bring more balance to the housing market.

71% of Americans Plan on Growing Food at Home in 2025

As grocery prices rise, more Americans are turning to home gardening to cut costs while also improving the quality of their food, according to a survey of nearly 1,000 by Frontdoor.

Cost Factor

Among the 71% who said they were planning on growing food at home this year, 54% said they were doing so to lower their grocery bills. On average, they reported trying to grow food to cover 23% of those costs. Expected tariff increases were also a concern, as 36% of respondents said they were planning to grow food to counteract them.

In cities, where the cost of living is typically higher, 11% said they grow food because they can’t afford to eat otherwise.

We hope you enjoyed this Market News Update. For more information about how we can help you, please contact us.

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Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the State of DE, the Florida Office of Financial Regulation and MD Mortgage Lender #23004. NMLS #128570.