Homebuyer Demand on the Rise Amid Stabilized Rates
Lisa Mailhot | October 7, 2024
Buyers
Lisa Mailhot | October 7, 2024
Buyers
With mortgage rates finding some stability, the latest data reveals a surge in homebuyer activity. A recent survey from the Mortgage Bankers Association (MBA) shows a significant 9% year-over-year increase in purchase loan applications. This uptick reflects growing consumer confidence and a response to expanding housing inventories.
Mortgage rates saw a low of 6.03% in mid-September, but have since increased slightly due to the Federal Reserve's cautious approach to rate cuts. While rates are up modestly, the forecast indicates they could dip below 6% by 2025, aligning with the spring homebuying season—traditionally a high-activity period in real estate.
The Federal Reserve recently cut rates, signaling a more gradual approach moving forward. According to Fed Chair Jerome Powell, “As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks.” Powell's remarks at a recent conference underscored the Fed’s balanced strategy as it aims to curb inflation without causing significant economic disruptions.
Investor interest in the bond market continues to influence mortgage rates. While recent dips in rates have sparked a wave of refinancing activity, refi demand has surged 186% from a year ago. Forecasts from the MBA and Fannie Mae anticipate mortgage rates will hover around 6% by late 2024, offering prospective homebuyers a more favorable landscape.
The current market trends suggest now might be the time for aspiring homeowners to take action. If you’re considering a move to the vibrant communities of Orange County, let’s connect! Whether you’re looking to buy or sell, I'm here to help you navigate the market and find the best opportunities.
Learn why a home equity line of credit (HELOC) may be smarter than a home equity loan this November. With expected rate cuts, a HELOC offers flexibility, savings on re… Read more
Nearly 23% of first-time homebuyers are holding off on their home search until after the upcoming election, hoping the winner’s housing policies will work in their fav… Read more
Climate disasters expose severe risks for mobile home residents, with hurricanes Helene and Milton highlighting how vulnerable these homes are. Explore why mobile home… Read more
The American Real Estate Association is exploring a class action against the National Association of Realtors (NAR) over its Clear Cooperation Policy. Learn how this p… Read more
Student loan borrowers, be prepared for significant changes in 2025 as credit reporting and collection activities resume. Learn what steps to take now to protect your … Read more
An investigation uncovers rampant discrimination against Section 8 tenants in California, with many landlords denying rental contracts to voucher holders. Learn more a… Read more
A lien on your property can halt a sale and create financial complications. Learn what a lien is, how to resolve it, and what options you have if it's incorrect. Under… Read more
With 223,000 affordable housing units set to expire in the next five years, low-income families may soon face drastic rent hikes. Explore the challenges of preserving … Read more
As mortgage rates stabilize, homebuyers are showing renewed interest with a 9% increase in purchase loan applications year-over-year. Explore what this means for the h… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most
Get In Touch With Lisa
Broker Associate
949-877-7087
124 Tustin Ave Suite 200, Newport Beach, CA 92663
