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Mortgage Rates Dip Slightly—Are Buyers Still on the Sidelines?

Mortgage Rates Dip Slightly—Are Buyers Still on the Sidelines?

Mortgage Rates Dip Slightly—Are Buyers Still on the Sidelines?

As of December 30th, 2024, the National Association of Realtors reported a surge in market activity, with pending home sales hitting a 21-month high. After a 15-month summer low, the housing market is rebounding, aligning with economists’ optimistic outlook for 2025.

Borrowing costs have reached their lowest point in over a month.‍The average rate for a 30-year fixed mortgage dropped to 6.69% this week, down from 6.81% the week before, according to Freddie Mac’s Thursday report. This marks the lowest average in more than a month and has spurred a noticeable rise in mortgage application activity, a key indicator of homebuying interest.

September saw a notable increase in home purchase contract signings, signaling a potential recovery in the housing market following a sluggish summer. The National Association of REALTORS® (NAR) reported a 7.4% rise in its Pending Home Sales Index from August, with a 2.6% increase compared to the previous year.