Nationwide, lower mortgage rates are helping the housing market. I know things are good for many Americans when I start to hear chatter about folks who bought in the past few years looking at really good refinance deals, and even 15 year mortgages – that’s conservative and good for the economy.
Neil Dutta at Renaissance Micro Research wrote this week that anyone claiming doom and gloom is “overblown.”
“…Contrary to the opinion of some doomsayers, lower interest rates are providing a lift to the housing market, particularly for home sales. Mortgage interest rates jumped sharply in 2018. The contract rate on 30-year mortgages jumped almost a full percentage point and was climbing nearly all year. But over the past 12 months, the average mortgage rate has been falling, dropping from 4.54% to 3.77%.”
“Pending home sales — which represent signed contracts on existing homes, and are therefore considered a leading indicator — have advanced to their best level since mid-2017. New-home sales, also representing signed contracts, have been bumpy in recent months but have climbed about 15% so far this year.”