Home Sales and Mortgage Demand Picking Up Thanks to Falling Rates
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Pending home sales increased 8.3% in December, the biggest increase since June 2020. This beat expectations.
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Mortgage applications have also picked up recently, increasing 8% in December and 10% so far in January compared to the previous months.
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Mortgage rates have eased from highs of 8% in October 2022, currently sitting at 6.69% according to Freddie Mac.
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The NAR forecasts existing home sales to increase 13% in 2024 and 15.8% in 2025.
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The NAR economist cites falling mortgage rates, stable home prices, income growth, and increased supply as reasons for a good 2023 housing market start.