This has been a great month for mortgages as rates have softened nicely offering A rated borrowers an opportunity to lock in the high 6s and more challenging files are locking in the 7's instead of the 8's like they were just a month or so ago.
Whether or not this will create a bump in the buyer activity remains to be seen but if all of this holds and these new lower rates stick around through the New Year we may see a nice increase in buyer activity. I would also like to see some of the sellers that have been holding off on either upgrading or downsizing start listing their homes.
Activity has been very slow on both sides of the market. A nice double bump would be well received by the industry. Keep in mind that historically the average mortgage is about 6.5% so we are now just barely above the 50 year average.
I still doubt we will see rates plummet down to the 2's and 3's anytime soon, maybe never, but 5's could be a reality within a couple years if the economic situation settles down.
So good news everyone the mortgage gods are giving you a Christmas present!
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