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Dropping Rates

by Southern Charm Realty & Retreats

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In a welcome turn of events, December has ushered in a much-desired moment for the real estate market as mortgage interest rates dipped below 7% for the first time in months. Perhaps it’s a Christmas miracle or perhaps it’s just the economy. According to Freddie Mac, rates for a 30-year fixed-rate home loan averaged 6.95% for the week ending Dec. 14. 

This is the first time mortgage rates have been anything lower than 7 since August. Experts believe that this downward trend will continue into the new year which will provide some much-needed relief for homebuyers that were priced out of the market in 2023. 

It’s Not Just Rates

Coupled with the slowly decreasing rates, buyers may be also getting a reprieve from astronomically rising home prices. While average home prices aren’t necessarily falling, they are holding steady (or increasing ever so slowly). 

For the week ending Dec. 9, home prices edged 1.5% higher than this same week a year earlier—the highest growth rate seen since May. If home prices follow annual trends, there may be yet another dip in January. Home prices tend to follow a seasonal path, with home prices typically being lower in the coldest Winter months. 

Prospective homebuyers could be cautiously optimistic as the calendar ticks over to 2024. Couple falling interest rates with more sustainable home pricing trends and there’s great potential that the new year will see a slew of new buyers entering the market!

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