Key Points:
- Purchase loan applications shot up last week, indicating increased demand by prospective homebuyers.
- Interest rates currently rest at a full percentage point below the peak of 2023, serving as a juicy enticement for house-hunters.
- Despite the ongoing low supply of properties and ridiculously high house prices, the dip in mortgage rates seems to have injected some caffeine into buyers’ veins.
- Though demand for refinancing continues to dive bomb due to higher rates, the demand for mortgages to purchase homes akin to George Clooney’s Italian villa is alive and kicking.
Hot Take:
“Sweat no more, real estate world! Just when we thought it was time to print ‘Missing’ posters for potential homebuyers, throngs of them seem to have emerged from hibernation. And what’s lured them out, you ask? Oh, just the tastiest carrot of lower interest rates. I mean, who wouldn’t leap like an Olympic high jumper at the chance of saving a few thousands on their mortgage? It’s evident that even though the real estate market might as well be on Mars, given how out of reach home prices are, buyers are pulling on their combat boots, ready to fight for their dream homes. So folks, if you’re thinking about refinancing… maybe hold off. But if you’re buying, it’s time to step into that gladiator’s arena. With a full percentage point drop in mortgage rates, there’s never been a better time to buy that Italian villa – I mean, single-family home.”
Mortgate Rates Drop, Homebuyers Rejoice
Original article: https://www.inman.com/2024/01/10/buyers-take-rebound-in-mortgage-rates-in-stride-as-lenders-tighten/
