Archive for January 2024

Falling Rates Help Build Buyer Interest

After slowing in October, the number of contract signings stabilized in November. The National Association of Realtors’ Pending Home Sales Index – which measures the number of contracts to buy homes signed during the month – saw no change from the month before but did find buyer activity increasing in most regions, with gains seen in the Northeast, Midwest, and West. Lawrence Yun, NAR’s chief economist, says falling mortgage rates are beginning to build home buyer interest. “Although declining mortgage rates did not induce more home buyers to submit formal contracts in November, it has sparked a surge in interest, as evidenced by a higher number of lockbox openings,” Yun said. According to Yun, buyers are now saving around $300 per month on their prospective mortgage payment due to the recent drop in mortgage rates. That improvement will likely help add to building buyer interest should it continue in the months ahead. (source)