Embark on a prosperous journey into the real estate market as we usher in the new year with a subtle shift in mortgage rates. Following a two-month decline, rates are gently ascending, accompanied by tighter mortgage lending standards not witnessed in a decade.
Despite this, the appetite for purchase loans experienced a surge last week, with potential homebuyers seizing the opportunity presented by rates still one percentage point lower than the peaks of 2023. This insight comes from a recent survey by the Mortgage Bankers Association, revealing a positive trend even as mortgage credit availability hit its lowest point since December 2012.
Industry experts suggest that the decline in credit availability is attributed to market consolidation, resulting in the removal of various loan programs. In a forecast released on December 12, MBA economists anticipate a drop in rates for 30-year fixed-rate loans to an average of 6.1 percent in the fourth quarter of 2024. Fannie Mae economists are ...