2023 was a year characterized by rising interest rates and macroeconomic uncertainty.
The 30 yr fixed rate mortgages topped out over 8% mid-October, which is in stark contrast to the sub-3% rates we enjoyed as recently as Q4 2021.
However, in roughly the past 2 months we have seen rates soften considerably.
(*picture courtesy of mortgagenewsdaily.com)
Anecdotally we had a buyer float her rate down to 6.5% 2 weeks ago, and then last week we were able to get a quote from one of our preferred lenders at 6.25%!
Generally the RE market is heating up, as this week we noted more Pending listings than New Listings on our MLS hot sheets, and that is a trend we expect to continue as rates continue to hold steady or track lower yet with the expected rate cuts from the FED into 2024 & 2025.
Many market experts are expecting this to cause many buyers to get off the fence and re-enter the market, at a time when builders have been putting less into the pipeline, generally speaking, could mean we found the price floor and some of the incentives we've seen builders offering locally could start to dry up as we head into 2024.