In February, the Federal Reserve raised their interest rate another .25%, marking the 8th rate hike since March of 2022. This followed a .50% hike the previous month, and four straight hikes of .75% prior to that (the Fed Rate is the interest rate banks and credit unions borrow and lend to each other). While the Feds appear to be winding down their rate increases, mortgage rates, which are not directly tied to the Fed Rate, are already coming down. In fact, they’ve dropped a full point since November.

From the Wall Street Journal:

Housing Market Shows Signs of Thawing

Falling mortgage rates are beginning to stir demand in the housing market.

The average 30-year home loan rate has come down by just about a full percentage point from a 20-year high above 7% in November, largely in response to signs that the Federal Reserve is nearly finished lifting rates. That has brought some new buyers into the market.

Mortgage applications are up by about a quarter since the end of last year. A measure of signed real-estate contracts rose in December after six months of declines. And the number of people contacting real-estate agents to start the buying process has rebounded from a November low, according to brokerage Redfin Corp.’s internal data…

See the rest at the Wall Street Journal (paywall):

https://www.wsj.com/articles/housing-market-shows-signs-of-thawing-11675617472