Buyers Are Shopping Again, Finding More Options
Real estate showings are on the rise and mortgage applications are increasing as rates inch down, the Wall Street Journal reported.
WASHINGTON – In January, mortgage rate declines led to the first wave of home buyers entering the market after record-high mortgage rates left many on the market sidelines.
For the week ending Jan. 31, ShowingTime, a subsidiary of Zillow Group, found real-estate showings rose 9.9% from the first week of 2024.
Freddie Mac reported that the 30-year fixed mortgage rate averaged 6.63% last week, down from a high of 7.79% last October. The Mortgage Bankers Association said that the number of mortgage purchase applications increased in the week ending Jan. 19 to its highest seasonally adjusted level since April.
Since the peak in mortgage rates last fall, Redfin says the decline in rates has provided home buyers with a $3,000 monthly budget with an additional $40,000 in purchasing power.
Active listings for homes are on the rise, as well, according to Realtor.com, though inventory is still tight.
Market experts, however, say that home sales will not return to normal levels until mortgage rates decline further, with a rate below 6% more attractive to potential buyers.
Source: Wall Street Journal (02/05/24) Friedman, Nicole
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