If you’re in the market for a new home this year, there’s good news to report. The new year began with a drop in mortgage rates. Rates recently fell to their lowest level since October.
The average 30-year, fixed mortgage rate now sits at 3.69-percent. The rate drop came as buyer sentiment remained strong at the close of last year.
Fannie Mae’s Home Purchase Sentiment Index comes out monthly. It hit an all-time high in 2019 and stayed close to that to finish the year.
While many people believe it’s a good time to buy, housing demand also remains high. According to CoreLogic, national home prices increase about 3.7-percent annually in late 2019.
Some economists say a drop in mortgage rates is helping support a gain in sales activity and a gain in home prices. There have reportedly been a large number of open homes this January. That’s something that doesn’t always happen at this time of the year.