Lower Mortgage Rates Are Bringing Buyers Back to the Market

Lower Mortgage Rates Are Bringing Buyers Back to the Market

Lower Mortgage Rates Are Bringing Buyers Back to the Market | MyKCM

Lower mortgage rates are bringing buyers back to the real estate market. After years of rising interest rates, many potential homebuyers had been priced out of the market or were waiting to see if the rates would eventually drop. Now that mortgage rates have come down, buyers are starting to make their moves.

The average rate on a 30-year fixed rate mortgage fell to 4.17 percent in the week ending June 4 from 4.30 percent the previous week, according to Freddie Mac. Thats the lowest rate since January 2018.

The lower mortgage rates have been the main factor driving the housing market this year. The lower rates have made borrowing more affordable for potential buyers, giving them the opportunity to purchase a home for less than what it would have cost just a few months ago. The National Association of Realtors (NAR) reported that existing home sales rose 5.1 percent from April to May, the biggest one-month gain since December 2017.

The effects of the lower mortgage rates have been felt throughout the market. First-time buyers are taking advantage of the rates, as are people looking to upgrade or downsize. The NAR reported that the share of first-time buyers rose to 32 percent in May,

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