Just six months prior, mortgage rates stood at above 5%, with no sign of easing. They persisted there for several weeks. Home buyers were feeling squeezed by rising prices, low inventory, and high rates. Sales began to plummet, even in the busiest markets.
When Federal Reserve Chairman Jerome Powell promised to put the breaks on interest rate hikes in December, most agreed it was a step in the right direction, but not enough to stem the tide of declining sales.
Fast forward to today, and the problems of six months ago seem like a dim memory. Mortgage rates stand at 4.5%, with little expectation they’ll rise again this year. It’s great news for buyers, who benefit from lower monthly payments, especially if they are willing to put down a substantial down payment.