A significant dip in mortgage interest rates is catching the attention of home buyers and sellers.
“Things are looking good,” Realtor Destiny Roxas said. "Things are getting excited again. I actually have people calling me from 2021 who want to get back into the market."
Optimism is on the rise, according to a monthly survey by Fannie Mae which showed that more homeowners believe rates will drop rather than increase.
In the past two months, the average 30-year fixed-rate mortgage dropped by around 1%.
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“That's significant as far as the housing market is concerned, particularly in an area like San Diego where housing prices are so high,” University of San Diego Economics Professor Alan Gin said. "So, if you take the median price of a house in San Diego, an 80% loan, that drop in interest rates will save the buyers almost $600 a month in terms of payments."
Housing is a major component of San Diego’s economy
“There’s a lot of activity going on in real estate," Gin said. "So that supports a lot of jobs, not only in the real estate area, but in finance as well, and then also you have periphery activities going on, such as remodeling, spending on appliances and furniture, things like that. So, it's an important part of the local economy now."
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Many experts expect more changes in the housing market in 2024.
“I expect rates actually to decline further over the course of the year," Gin said. "So, you might have some people then holding out then for even lower rates,.".
