The average 30-year fixed-rate mortgage dropped to 3.97 percent last week, the lowest rate since November. For potential buyers on the fence, an affordable mortgage rate might be the final push they need toward homeownership.
Forbes spoke with several housing industry analysts and listed six predictions for the spring. Along with higher demand from lower mortgage rates, the experts said that supply will not meet demand, prices will continue to rise in the short-term, and that many buyers will be the same buyers who were looking for homes a year ago.
Prices are expected to slow in expensive markets, such as San Francisco, and rise in affordable markets like Nashville. Also, buyers will face intense competition, and many listings will receive multiple bids.
“We are right in the thick of a record-breaking spring home buying season. This is officially the most frenzied season on record,” says Javier Vivas, manager of economic research for Realtor.com. He bases this measure on market velocity—homes on the site are selling in just 69 days, which is eight days faster than last year—as well as inventory relative to demand.