Falling Mortgage Rates Boost Homebuilder Sentiment

The U.S. housing market shows signs of revival as lower mortgage rates spur increased interest from prospective buyers.

Homebuilder sentiment in the U.S. housing market has rebounded in December from an 11-month low as high mortgage rates begin to fall.
The National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, rose three points to 37, slightly more than expected.
Over the past seven weeks, the average 30-year fixed mortgage rate in the U.S. has fallen from a 23-year high of 7.79% to 6.95%.
Builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look.
The housing market appears to have passed peak mortgage rates for this cycle, and this should help to spur home buyer demand in the coming months.