The real estate market in the US is showing signs of thawing as mortgage rates dip and listings inch higher. The subprime mortgage crisis sent shockwaves through the housing market and the aftermath had investors and potential buyers scrambling to find affordable mortgages. But now, with mortgage rates falling to the lowest level in nearly three years, the market is beginning to show signs of life.
The average rate on a 30-year fixed mortgage dropped to 3.66% from 3.75% a week earlier, according to Freddie Mac, the mortgage giant. That’s the lowest rate since late 2016. Lower mortgage rates have encouraged more potential buyers, as well as existing homeowners to refinance their mortgages, or purchase a home and take advantage of the new rates.
Additionally, the number of new homes for sale in the US have also increased. The National Association of Realtors reported that there were 1.74 million homes for sale in November, which is a 3.7% increase from a year ago. This is the highest levels since December 2015.
The housing market has also seen an increase in homebuilder confidence. The National Association of Home Builders (NAHB) index rose two points to 70 in February. This is the highest level since August and is seen as a sign of increasing demand for new homes.
However, despite the signs of some thawing, the housing market in the US still faces many headwinds. High levels of affordability continues to be an issue for many, while questions surrounding the health of the economy still linger.
Still, the signs of some improvement in the housing market are encouraging. Lower mortgage rates and increased available listings could be the catalyst to get the housing market back on track.
The real estate market in the US is showing signs of thawing as mortgage rates dip and listings inch higher. The subprime mortgage crisis sent shockwaves through the housing market and the aftermath had investors and potential buyers scrambling to find affordable mortgages. But now, with mortgage rates falling to the lowest level in nearly three years, the market is beginning to show signs of life.
The average rate on a 30-year fixed mortgage dropped to 3.66% from 3.75% a week earlier, according to Freddie Mac, the mortgage giant. That’s the lowest rate since late 2016. Lower mortgage rates have encouraged more potential buyers, as well as existing homeowners to refinance their mortgages, or purchase a home and take advantage of the new rates.
Additionally, the number of new homes for sale in the US have also increased. The National Association of Realtors reported that there were 1.74 million homes for sale in November, which is a 3.7% increase from a year ago. This is the highest levels since December 2015.
The housing market has also seen an increase in homebuilder confidence. The National Association of Home Builders (NAHB) index rose two points to 70 in February. This is the highest level since August and is seen as a sign of increasing demand for new homes.
However, despite the signs of some thawing, the housing market in the US still faces many headwinds. High levels of affordability continues to be an issue for many, while questions surrounding the health of the economy still linger.
Still, the signs of some improvement in the housing market are encouraging. Lower mortgage rates and increased available listings could be the catalyst to get the housing market back on track.
