This week, Freddie Mac announced that mortgage rates are continuing to decrease, hitting a 4 month low.
As inflation continues to moderate, mortgage rates declined again this week. Rates are at their lowest level since September of last year, boosting both homebuyer demand and homebuilder sentiment. Declining rates are providing a much-needed boost to the housing market, but the supply of homes remains a persistent concern.
The 30-year fixed-rate mortgage decreased by 0.18 percentage points and is now averaging 6.15%, according to Freddie Mac. It is the second week in a row that the 30-year rate has moved lower. Borrowers looking into a 15-year fixed-rate loan will find rates averaging 5.28%, down by 0.24 percentage points.
“Lower rates have meant phones ringing, busier open houses and we are even seeing multiple offers on many properties,” said Molly Manley, Senior Loan Officer at Streamline Home Loans. “If you’re thinking about selling, start the conversation! That said, many homes still have room for negotiation, making now a great time to buy.”
To learn more about how mortgage rates are impacting your buying power, reach out to Molly or one of our amazing Streamline Loan Officers!
How are mortgage rates impacting home sales?
Money reported today that the housing market slowdown continued in November as existing home sales decreased for the 10th consecutive month, according to the National Association of Realtors.
Existing homes sold at a seasonally adjusted annualized pace of 4.09 million units, a decrease of 7.7% from October and of 35% compared to a year earlier.
Sales have not been this slow since May 2020 — the height of the COVID pandemic lockdown period, according to Lawrence Yun, chief economist at NAR. Back then existing home sales were at an annualized rate of 4.07 million homes.
"It's quite an amazing situation that today's sales activity in November is essentially almost the same as that lockdown period," Yun said.
Discounting the 2020 number as an aberration and comparing instead to a 'normal' year, sales are down to their lowest level since November 2010, added Yun, when the market was in the midst of the foreclosure crisis.
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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
