With mortgage rates reaching the highest level in more than 20 years at over 7% in October 2022, a housing market cooldown was all but inevitable. But in the first weeks of November, mortgage rates fell below the 7% threshold with the 30-year fixed-rate mortgage averaging 6.58% in the week of November 23 in reaction to October’s lower-than-expected inflation report. In the last week of November, however, rates for the benchmark 30-year fixed mortgage reversed course and climbed 15 points over the previous week, averaging 7.32%. 

The ups and downs beg the question: will a dip in mortgage rates, however short-lived, precipitate another housing rush? According to Realtor.com® Chief Economist Danielle Hale in her weekly analysis , “economic uncertainty and the sense that low rates may not last long enough for shoppers to capitalize on them could mean we don’t see the same boost in demand this time around.” Yet, the Mortgage Bank Association reported an increase in mortgage applications around the week rates fell. 

While a housing rush the likes of 2020 and 2021 is not in the cards, homebuyers are keeping their eyes peeled for a window of opportunity when rates may slide again. The good news for homebuyers is that home prices continue to slow across the country as higher mortgage rates erode demand. The S&P CoreLogic Case Shiller national home price index dropped 0.8% month-over-month in September.

If you’re interested in purchasing a home this year, I would love to help! Contact me today to discuss your options.