The real estate market is accelerating: Ara Hovnanian Hovnanian Enterprises Chairman, CEO and President Ara Hovnanian responds to increased homebuyer confidence due to lower mortgage rates in the Claman countdown.
Mortgage rates fell again this week, continuing a series of declines since late October.
The trend is starting to show signs of life in a stagnant real estate market, but economists don’t expect affordability to improve significantly anytime soon.
The average interest rate on the benchmark 30-year fixed mortgage fell to 6.
67% this week, down from 6.
95% last week, but still one-year This was higher than the previous rate of 6.
27%.
At the same time, 15-year fixed mortgage rates have fallen to an average of 5.
95%, from 6.
38% last week.
A year ago, the average interest rate on 15-year fixed bonds was 5.
69%.
US IS “ENTERING THE GREATEST REAL ESTATE CORRECTION” IN HIS LIFE, SAYS THE PRIVATE EQUITY FUND MANAGER.
“Lower interest rates are bringing previously held back potential homebuyers back into the market, and builders are already starting to feel the positive impact,” said Sam Cater, chief economist at Freddie Mac.
Ta.
“Rising confidence in home builders and the subsequent increase in new home construction has reached its highest level since May, and while current inventory levels remain low, we are taking action to meet increased demand.
4,444 data from the National Association of Realtors shows existing home sales are on the rise, up 0.
8% in November after five months of declines, and Commerce Department said last month.
It reported a 14.
8% increase in housing starts, suggesting progress in a stagnant market.
Both buyer and seller activity is near recent lows, said Hannah Jones, senior economic research analyst at Realtor.com.
AN ECONOMIST WARNS THAT HOME SUPPLY WILL STILL BE STRAINED IN 2024.
In response to the most current mortgage rates, Jones released a statement saying, “Though recent data signals a shift towards a more hospitable housing market, the return to balance will be slow.” “Mortgage rates and home prices are well above pre-pandemic levels, and are projected to remain elevated through next year.”
