Mortgage rates are not only down again in the U.S. but are now the lowest they have been in six months since May, which extends the good news for homebuyers. The rate on the 30-year fixed mortgages has declined to 6.61%, easing from 6.67% the week prior. Not only that, but this marks the ninth straight week of declines, and many industry watchers are optimistic about this steady slide.

Since October, mortgage rates have fallen more than a whole point. This recent improvement can relieve potential homebuyers with a more favorable shift this year. If rates continue to remain low in the middle of next month, we can look for a reasonably strong response on the part of these homebuyers.

Perhaps this will fuel fresh demand for home purchases in the coming months as the market’s season is underway. Some homeowners may even be enticed to sell if the interest rates remain good. According to Realtor.com, “Roughly two-thirds of outstanding mortgages have a rate under 4%, and more than 90% have a rate less than 6%. In November, though, there were 7.5% more newly listed homes on the market compared to last year – a sign of some more action from sellers.” Looking ahead into this year, economists are expecting further declines in mortgage rates down the road.

Alongside these factors, homebuyers can also expect the housing market to include more housing inventory from home builders. Take a look at the demographics of those seeking to purchase their home. According to NAR, “This year, even the youngest baby boomer (born between 1946 and 1964) turned 60 years of age. Baby boomers are the largest share of homebuyers and may be looking for their retirement property. Additionally, millennials (the largest adult generation) may be looking for their first property or a move-up family home. Housing demand is apparent. With added inventory and better mortgage interest rates, 2024 looks like a better year.”

With these mortgage rates falling for the ninth week in a row, this is a welcome sign for homebuyers to keep their heads high when getting into the real estate market today. Having these mortgage rates under 7% for the first time in months and home prices slowing down their rates present the perfect opportunity for those wishing to buy or sell their home.

Samantha Minns
RWorld Content Writer
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Source: NAR, Realtor.com