Freddy Mac reported that mortgage rates fell to the lowest level in three months. What is unusual is that December proved to be a very strong month for sales and increases in the median home price, especially in New Jersey.
The average 30-year fixed-rate hit 3.6% for the week of January 23.
Obviously, this is not going unobserved by homebuyers.
According to the National Association of Realtors’ website, “Home-buying power in December was 12.5% higher year over year largely due to a combination of low mortgage rates and an uptick in annual household income.”
And compounding this is the pent-up demand coming from first-time buyers is palpable. According to a survey by the NAR, “63% of those who said they plan to buy a house are first-time homebuyers. This is much larger than a year earlier, when 53% of prospective homebuyers were first-timers.”
The report breaks down the potential first-time buyers to be:
Millennials – 19%
Gen Z – 13%
Gen X – 12%