With the mortgage rate having tumbled more than a full point in many cases, more homes are being listed, and sales are rising as buyers are pouncing on their sudden change in fortune, according to recent data.
In December, mortgage rates dropped from more than 7 percent to the mid-six percent range—a consequential event that jump-started home sales. Many VA loans are being quoted at 6 or 6.25 percent for those with good credit scores.
Mortgage applications spiked 34 percent in the week ending Jan. 19 compared with four weeks earlier, according to the latest Mortgage Bankers Association data.
From November to December, new home sales and pending home sales were both up by about 8 percent, according to the U.S. Census Bureau, the U.S. Department of Housing and Urban Development, and the National Association of Realtors®.
“We’re at a turning point,” says Realtor.com® Chief Economist Danielle Hale. “This could be a sign that the market is opening up, and we could see more people moving and [buying and selling] this spring.”
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