Lower mortgage rates are expected to spur more buyers to enter the housing market. A house for sale in Los Angeles last month is seen here.If you're enjoying this article, you'll love our daily newsletter, The LA Report. Each weekday, catch up on the 5 most pressing stories to start your morning in 3 minutes or less.
He and his colleagues forecast that the average rate on a 30-year fixed-rate mortgage will be about 6.2% by the end of this year — where it is now. That's tough for first-time homebuyers. Kim Kronenberger, a real estate agent in the Denver area, says she worries for the would-be homebuyers who keep waiting for affordability to improve.scared off by bidding wars during the low-interest-rate era — and then were rebuffed by high mortgage rates and still-high prices.
Completed and under-construction new homes are seen in Trappe, Md., in 2022. Lower interest rates and an expected bump in demand from buyers are likely to spur more homebuilding.The fact that lower mortgage rates are expected to spur more homebuyers to buy will also serve as an incentive for builders to get building.