Homebuyers are making their retuꦐrn to the housing market, seeing more houses than in recent months, as mortgage rates and housing prices fall.

Housing costs are coming down: The typical mortgage payment is at its lowest level since January. The lowest average mortgage rates in two years have pushed the typical mortgage payment to $2,529, according to a recent report from Redfin. That's 5.9% lower than the same time last year, the biggest drop since May 2020.

According to data from Optimal Blue and analyzed by Redfin, home touring was up 9% in September compared to the month prior. Homebuilders are also noticing an uptick in demand. Builders' confidence in sales over the next six months increased as they reported more prospective buyer traffic in September, according to the National Association of Home Builders.

Mortgage Rates Are Enticing Potential Buyers

Over the pas♕t two years, high mortgage rates have puܫshed many potential buyers to the sidelines.

In addition to increased borrowing costs, mortgage rates pushed up home prices. Some hesitated to sell their homes and trade the ultra-low rates they secured during the pandemic for rates hovering near 7%. The limited supply of homes on the market created competition among buyers and pushed prices to record highs.

While mortgage rates are still above the record lows seen during the pandemic, they are falling. Less than a week after the Federal Reserve cut its influential federaꦆl f🔥unds rate, mortgage 澳洲幸运5官方开奖结果体彩网:applications were up 70% compared to the year prior, Redfin found in a separate report.