Fridays on this blog are for the payment. Freddie Mac publishes its mortgage rate survey on Thursdays, so each Friday I’ll run the newest rate against Parker’s current median price and show the math.
This week’s news is small but welcome. Rates fell again, and Freddie Mac says the 30-year average is now at its lowest level this month.
This week’s rates
Freddie Mac’s 30-year fixed average was 7.24% as of October 29, down from 7.32% a week earlier. A year ago it was 6.17%. The 15-year fixed average was 6.60%, down from 6.68% last week and up from 5.41% a year ago.
These are national averages. They aren’t a quote for any one borrower.
The payment on a median-priced Parker home
Redfin puts Parker’s median sale price at $669,131 for the three months ending in September. Here’s the monthly principal and interest at this week’s rate:
| Down payment | Cash down | Loan amount | P&I at 7.24% | Change from last week | Change from a year ago |
|---|---|---|---|---|---|
| 10% | $66,913 | $602,218 | $4,104 | −$33 | +$427 |
| 20% | $133,826 | $535,305 | $3,648 | −$29 | +$380 |
30-year fixed, principal and interest only, using the same loan amount for every comparison. Taxes, insurance, HOA or metro district fees, and mortgage insurance would come on top.
How the math works
The standard formula is P&I = L × r ÷ (1 − (1 + r)^−n). L is the loan amount, r is the monthly rate, and n is the number of payments.
For the 20% down row, L is $535,305, r is 0.0724 ÷ 12, or about 0.006033, and n is 360. That comes to $3,648 a month. Running the same loan at last week’s 7.32% gives $3,677, and at last year’s 6.17% it gives $3,268.
A shortcut helps when you’re comparing homes. At 7.24%, each $100,000 you borrow costs about $682 a month in principal and interest. At 6.17%, it was about $611.
A second look at the median
The median depends on who’s measuring it. Resideline, which tracks closed sales over a rolling six months, shows a lower $640,000 median on its page updated October 3. On that number, the payment at 7.24% is $3,925 with 10% down and $3,489 with 20% down. That’s roughly $160 to $180 a month below the Redfin-based figures, so it’s worth working from the price range you’re actually shopping in.
What about a 15-year loan?
At 6.60%, the same $535,305 loan on a 15-year term comes to about $4,693 a month. That’s roughly $1,044 more each month than the 30-year payment, in exchange for a lower rate and a loan that’s paid off in half the time. Whether that trade makes sense depends on your budget, so it’s a good one to walk through with a lender.
What it means
If you’re buying: This week’s drop saves about $30 a month on a median-priced home, which is real money but not a big shift. The purchase price matters too. With 20% down, $10,000 off the price trims about $55 from your monthly principal and interest. Get quotes for your own credit and loan type, since your rate can differ from the average.
If you’re selling: Many buyers shop by monthly payment, so it can help to know what your list price looks like at today’s rates. In September the typical Parker home sold for 98.7% of its list price, according to Redfin, so buyers are still paying close to asking, with a little room for negotiation.
