Mortgage applications surged by 9.9% in the first week of the year, a sign that lower rates are bringing homebuyers off the sidelines, according to a report released Wednesday by the Mortgage Bankers Association.
Applications soared in the week ending January 5 from a week earlier, on a seasonally adjusted basis, with additional adjustments made to account for the New Year’s holiday.
The jump was a promising sign for the housing market this year, and an indication that falling rates are bringing more buyers back to the market as the cost of financing a home drops. Home affordability in the fall of 2023 was the worst in a generation. As mortgage rates drop, affordability improves — even if the price of homes remains elevated.
Given the Federal Reserve’s indication that it plans to cut its benchmark rates in the coming year, analysts and economists expect mortgage rates to continue to drop in 2024, but not go below 6%.
Click below for full article from CNN.com