It appears that the much-discussed thawing of the housing market is now finally underway, as mortgage rates and listings both inch higher after months of stagnation.
In the United States, mortgage rates dropped in April to the lowest levels seen since 2016, as low as 3.39%. This news reinforces the positive view of the current state of the housing market and could spur potential buyers to take out mortgages.
Though housing costs have been higher across much of the nation, April enjoyed some respite from widespread rents and mortgages rising uncontrollably. While other economic indicators may have suffered from a global slowdown, this period of generally stable mortgage rates could lead to a period of increased activity in the housing market.
On the other side of this equation, homes for sale have climbed over the course of the last several months. Between February and March, the United States saw a dramatic rise of over 6%, and this appeared to continue into the beginning of April. Potential buyers now have more homes to choose from, creating a more balanced market instead of the severe competition seen earlier.
It’s unclear if these positive signs for the housing market will continue, as much will depend on the wider economic picture. Recent months have demonstrated that the situation can turn on a dime, and the pandemic still creates an imminent threat for much of the country. But for now, the housing market appears to be steadying, even as other sectors remain on shaky ground.
Overall, mortgage rates have shown an encouraging decline and more homes are being listed on the market as well. It’s too early to know if this is the start of a broader housing market resurgence, but the current situation does look more optimistic than it has in some time.