Lower Mortgage Rates Help Push Home Sales to Nearly 3-Year High
Residential Real Estate, Mortgages & Home Financing - By: Melissa Dittmann Tracey
While the decrease in rates is helping to offset higher home prices, buyers still face a challenging housing market.
Hopeful home buyers may be getting their New Year’s wish: Lower mortgage rates—and they’re fueling an uptick in home sales.
Existing-home sales jumped 5.1% in December, the strongest reading in nearly three years, even after adjusting for seasonal factors, the National Association of REALTORS® reported Wednesday. Sales are up 1.4% from a year ago. December’s gain followed a smaller increase in November, also tied to the drop in mortgage rates that was set in motion this past fall.
It’s the type of building momentum the housing market has been waiting for. After all, “2025 was another tough year for home buyers, marked by record-high home prices and historically low home sales,” says Lawrence Yun, NAR’s chief economist. “However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth.”
Read the full story here: https://www.nar.realtor/magazine/real-estate-news/economy/lower-mortgage-rates-help-push-home-sales-to-nearly-3-year-high
