According to The Real Deal, a combination of low interest rates, consumer confidence and lots of open houses are starting the new year off with good news for housing. Quoting numbers from CNBC, the average 30-year fixed mortgage rate dropped to 3.69 percent which is the lowest level since October. The network is also reporting a high number of open houses scheduled in January which is a rare occurrence. Looking at numbers from the Home Purchase Sentiment Index, showed high confidence in the market.
“The continued strength in the HPSI attests to the intention among consumers to purchase homes,” Doug Duncan, senior vice president and chief economist at Fannie Mae, told CNBC.
“The HPSI hit and remained near an all-time high in 2019, driven by the 16-percentage point year-over-year increase in the share of consumers believing it is a good time to buy.” Demand for housing was also high, and national prices increased 3.7 percent annually in November, according to CoreLogic.
Frank Nothaft, chief economist at CoreLogic, said the figures showed that the slow sales seen early last year had rallied. “The decline in mortgage rates, down more than one percentage point for fixed-rate loans from November 2018, has supported a rise in sales activity and home prices,” he said. [CNBC] — Sylvia Varnham O’Regan
