Mortgage Rates Fall, Sparking Surge in Refinancing and Homebuilding

Housing affordability remains a challenge, with only 15.5% of homes listed in 2023 considered affordable for the average U.S. buyer.

Mortgage rates have fallen from their two-decade peak a few months ago, sparking a surge in refinancing and mortgage applications.
Homebuilder confidence rose to its highest since September, with builders preparing to ramp up production as mortgage rates continue to fall.
Despite falling rates, housing remains unaffordable for a large portion of the country, with only 15.5% of listed homes for sale in 2023 considered affordable for the average buyer in the U.S.
Racial disparities in housing affordability persist, with only 6.9% of homes for sale in 2023 considered affordable for the average Black household.
Experts are optimistic that if rates continue to ease, home purchases will pick up in the coming months.