Mortgage rate decline pulls buyers back into the housing market

The spring housing market seems to be starting early this year, thanks to a recent drop in mortgage rates. The decline in rates is being credited with driving buyers back into the market. While the supply of houses is still tight, it is expected that more houses will become available soon. Consumers are optimistic that mortgage rates will continue to fall, with expectations that they will decrease further. The average rate on a 30-year fixed mortgage has experienced significant fluctuations, hitting record lows in 2020 and 2021, causing a surge in homebuying and prices, followed by a sudden increase in 2022. However, rates have since fallen and are now at around 7%, which is double compared to three years ago. Real estate agents are seeing an increase in buyer interest, and there is anticipation for an increase in housing inventory in the coming weeks.