Winston Salem | Mortgage Rates Tumble

The 30-year mortgage fell to its lowest level since May 2023, which “should begin to pique buyers interest in making a move” 

Key points:
The fixed-rate 30-year mortgage averaged 6.47% this week, while the 15-year rate dipped to 5.63%. 

Mortgage applications for home purchases remained flat, however, although there was a bump in refinance applications. expected to remain low.

Mortgage interest rates dropped to the lowest level in 15 months this week, so the big question now is whether they've fallen enough to get potential homebuyers off the sidelines.

The 30-year fixed-rate mortgage averaged 6.47% this week, according to the latest Freddie Mac survey. That's down from 6.73% a week ago. The 15-year fixed-rate averaged 5.63%, down from last week's 5.99%.

Will buyer activity start to pick up?

According to experts: The decline in mortgage rates does increase prospective homebuyers' purchasing power and should begin to pique their interest in making a move, 

But so far, falling rates haven't resulted in a surge in mortgage purchase applications, according to the Mortgage Bankers Association, although there was a jump in refinance applications. Homebuyers could be waiting for rates to drop further, said Joel Kan, deputy chief economist at the association.

And that could happen in the second half of the year, but it will be a bumpy ride, said Lisa Sturtevant, chief economist for Bright MLS. Since potential homebuyers didn't jump when rates began falling five weeks ago, they may remain patient.

"Buyers are flexing a bit. While it is most certainly not a buyer's market, it has been a long time since buyers have had this much leverage in the market," Sturtevant said.
Inventory continues to climb

Sellers appear to be watching mortgage rates as well. Redfin reported that new listings are up 5.9% year-over-year, the biggest increase in five weeks.
But that rate of growth might not be enough to shift market dynamics, as supply remains low compared to recent years, said Simonsen.

Real estate is all about location — and timing. The drop in mortgage rates might simply be hitting at the wrong moment for some buyers. Schools are starting up in the coming weeks, and families may be reluctant to switch districts.

"The seller's pace is still very restricted," Simonsen said. "Until we see new listings pick up, we should see a cap on inventory growth."

Thinking of selling?   Contact us to discuss your options in this new environment!