Falling mortgage rates, rising listings mark house hunters return MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

With mortgage rates dropping to their lowest levels in almost a year, house hunters are returning to a market that many had shied away from in 2023. For the week ended December, 28, 2023 the average thirty year fixed mortgage rate was six point sixty one percent, the lowest rate since May A new report from Redfin found the median housing payment in the U.S. has fallen $400 from its October peak, enticing buyers back to the market as they take advantage of lower mortgage rates and an influx of new inventory.

During the four weeks ended December 31, 2023 new home listings rose ten percent year over year, and the median mortgage payment fell to $2,361, down fourteen percent from October’s all-time high and its lowest in nearly a year. And buyers are taking notice. According to Redfin’s Homebuyer Demand Index, requests for tours and services from Redfin agents are up ten percent from November and at their highest level since August. Pending sales, though down three percent from last year, had their smallest decline in two years. “There have been more tours and more offers on my listings since mortgage rates started declining,” said Redfin Premier agent Shay Stein.

“It’s all about perspective: Two years ago, buyers would have cried about a six percent mortgage rate. Now, they’re happy they’ve dropped down to the mid-sixes.”  In the four weeks ended December 31, 2023 active listings fell three point nine percent from last year, the smallest decline since June. Meanwhile, new listings rose nine point five percent from last year. The median asking price rose four point three percent to $359,236. Meanwhile, the median sale price increased four point four percent year over year to $363,371, the biggest increase since October of 2022.

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