Mortgage Rates Drop For Second Week in a Row
Mortgage rates fell for a second straight week amid broader signs of an economic recovery. The benchmark’s 30-year home-loan rate dropped to 3.04% last week, down nine basis points from the week before. These are the first declines in rates in over two months.
In recent years, mortgage rates have been at historically low levels. However, they were pushed higher by an increase in demand and a low supply of homes on the market. This trend was fuelled by the Covid-19 pandemic, which led to an increase in the number of people unwilling to sell properties in these unprecedented times. This situation caused the prices of the available properties to skyrocket, leading to bidding wars and people having to spend more than they originally planned.
Real estate agents have had their hands full with these bidding wars. However, finding new real estate leads is getting easier, and establishing a proper relationship with customers instead of blindly running around trying to make a sale is possible thanks to the number of new home listings, which is steadily going up.
“This won’t solve the inventory crunch overnight, but it’s a big step in the right direction, and one we’re likely to see more of in the weeks ahead as we approach the best time of the year to sell a home,” said chief economist at Realtor.com, Danielle Hale.
The drop in rates comes amid other economic improvements, including better jobless claims as well as better manufacturing and sales numbers. As the pace of vaccinations continues to accelerate, restrictions are being lifted, and many states are opening up. The economy is steadily getting back on track, with more Americans willing to return to their daily activities and increase their spending.