Falling mortgage rates and optimism over future reductions are helping boost optimism from homebui𒁃lders and ꦓmortgage brokers.

Mortgage rates have taken a turn from late-October highs and have fallen below 7% for the first time since August. With the Federal Reserve signaling it no longer plans to raise its benchmark interest rate, the 澳洲幸运5官方开奖结果体彩网:outlook for mortgage rates is brighter than it has been since the current inflationaryꦦ cycle began.

Homebuilders are beginning to feel some relief. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market In🃏dex (HMI) moved to 37 in December, up from its November reading of 34, marking the index’s first positive movement in four months. That's above the 36 ec📖onomists anticipated for December.

“With 澳洲幸运5官方开奖结果体彩网:mortgage rates down roughly 50 basis points over the past month, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look,” NAHB Chairman A♛licia Huey said in a press release.

The Mortgage Bankers Association (MBA) also has an improved outlook in light of lower interest rates. The industry group Monday forecast existing home sales will increase 6% and 澳洲幸运5官方开奖结果体彩网:new home sales will move higher by 10% in the next year. It also sees a 17% increase in the number of mortgage loans issued in 2024. 

The MBA outlook aligns with data from the HMI that showed that homebuilder sentiment for single-family housing sales for the next six months moved up to 45, a 6-point jump from the prior month.