Posted 12/14/2023, 6:56:00 PM
Lower Mortgage Rates Provide Relief for Homebuyers, Though Prices Remain High
- Monthly mortgage payments dropped to an 8-month low in December after the Fed signaled future rate cuts, providing some relief for homebuyers
- Mortgage rates have fallen from over 8% in October to 6.62% currently, substantially reducing monthly payments
- Home prices and rents are still high historically but have started decreasing on an annual basis, providing a bit of affordability relief
- Homebuyer demand has ticked up with lower rates, though prices are rising due to low supply
- The rental market is softening with asking rents posting the biggest annual drop since early 2020