As mortgage interest rates rose last year, activity in the housing market slowed. As a result, homes received fewer offers and stayed on the market longer. This meant that some homeowners decided to put off selling their homes. However, mortgage interest rates began to fall and homebuyers began to return to the housing market.
By selecting an excerpt from an article published on the KeepCurrentMatters website, the American Housing website brings to you, dear comrades, the words of several economists working in the field of housing.
In fact, the latest data from the Mortgage Bankers Association (MBA) shows that mortgage applications increased 7% last week compared to the previous week.
So, if you’ve been thinking about selling your home but aren’t sure anyone will buy it, this market shift could be your chance. Here’s what experts are saying about homebuyers returning to the housing market as spring approaches.
Mike Fratantoni, MBA, Deputy Secretary and Chief Economist, says:
“Mortgage rates are now at their lowest level since September 2022, about one percentage point below the peak of mortgage rates last fall. As we enter the spring home buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.
Lawrence Yun, chief economist at the National Association of Realtors (NAR).
“The coming months should see homebuyers return to the market, as mortgage interest rates appear to have already peaked and have been falling since mid-November.”
Thomas LaSalvia, chief economist at Moody’s Analytics, says:
“We expect the labor market to remain strong, wages to continue to rise, perhaps not as rapidly as they did during the pandemic, but with some stability in mortgage interest rates, that will create an opportunity for people to own a home.”
Sam Khater, chief economist at Freddie Mac, says:
“Homebuyers are waiting for mortgage interest rates to drop significantly, and when that happens, a strong job market and a large number of renters will support the housing market.”