Will Plunging Mortgage Rates Spark a New Homebuying Rush?

Mortgage rates have more than doubled throughout 2022, blasting past the 7% threshold and hitting a 20-year high in late October.

November 27, 2022

by: Aimee Hartwig Real Estate

The Mortgage Bankers Association reported This Week in Real Estate that purchase applications rose 3% over the prior week marking the second consecutive week of mortgage application growth. That is in line with the decline in rates as they fell for the second week in a row. The 30-year fixed-rate is now half a percentage point lower than its recent high. According to Realtor.com, the week ending November 19th saw fewer new listings for sale compared to the same week a year ago, the 20th straight week of yearly declines. While inventory has grown it is a result of homes staying on the market longer rather than an influx of new homeowners listing their homes for sale. Additionally, home price appreciation has decelerated for six consecutive weeks.

“When mortgage rates dipped this summer, it boosted buyer demand enough to stabilize cooling trends.”

 Danielle Hale, Realtor.com® Chief Economist

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