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Mortgage Rates Decline in the United States
Jan 27, 2024
Mortgage Rates Decline in the United States Dallas
By   Internet
  • City News
  • The American housing market
  • mortgage rates
  • existing home inventory
  • real estate market
Abstract: Recent data released by the National Association of Realtors (NAR) in the United States showed a significant increase in the inventory of existing homes for sale in December due to a decline in mortgage rates, prompting buyers to return to the market.

Existing home inventory in the United States reflects transactions that have been signed for sale but have not yet closed, serving as an indicator of the trend of existing home sales in the coming months. This is also the largest increase since June 2020, when the increase was 14.9%.

With the decline in mortgage rates, demand from buyers has been stimulated. Reports earlier this week indicated an increase in contract signings and mortgage applications, indicating growing demand from buyers.

Economists expect existing home sales in December to increase by 2%. Transaction volume increased by 1.3% compared to last year. NAR also released its latest forecast for existing home sales, predicting a 13% increase in sales volume in 2024 compared to last year, reaching 4.62 million units.

Mortgage Rates Decline in the United States

However, the recovery of the real estate market is still constrained by supply limitations. Unless more homeowners decide to sell their homes, sales volumes will not be able to increase significantly, posing a challenge to the recovery of the real estate market. In addition, the rise in existing home prices will also put pressure on buyers.

Despite facing some challenges, Lawrence Yun, Chief Economist at NAR, stated that the housing market started the year on a positive note, with consumers benefiting from declining mortgage rates and stable home prices. He added that the addition of new jobs and income growth will further improve housing affordability, but increasing supply is crucial to meeting all potential demands.

To meet market demand, the government can take a series of measures to promote an increase in supply. For example, encouraging developers to increase the number of new homes built, reducing the difficulty and cost of developing new projects, and so on. In addition, the government can also encourage homeowners to sell existing homes through tax policies or other means.

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Mortgage Rates Decline in the United States
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