Housing market may be thawing as rates dip and listings inch higher


Housing market may be thawing as rates dip and listings inch higher

The housing market may be thawing as mortgage rates dip and the number of available properties increase. The latest figures from the Mortgage Bankers Association show that the average rate on a 30-year fixed mortgage dropped to 3.6% last week, just slightly down from 3.7% the week before. This is the lowest rate since April 2021 and marks a significant reduction compared to the high reached in December of 4.2% for a 30-year mortgage.

At the same time, there has been an uptick in the number of homes listed for sale in the past month. According to the National Association of Realtors, pending home sales rose 7.4% in April, the largest monthly gain in nearly three years.

The combination of low mortgage rates and an increasing number of homes on the market could finally provide an opportunity for buyers who have been waiting on the sidelines predating the arrival of the pandemic. The new housing stock also adds an incentive for buyers to finally get off the fence and take advantage of the current market opportunities.

In addition, there is also reason to believe that home builders may begin to pick up the pace to meet the pent-up demand. Furthermore, this low interest rate environment could also set the stage for a wave of refinancing for those who already own homes.

As such, the signs are there that the long-stalled housing market is coming back to life and it may be time to take advantage of the current situation.