The slowdown in the real estate market that began last summer is showing signs of reversing, according to Realtor.com.
"I don't think we'll get back all the way to ... the frenzy we saw at the beginning of 2018," says Chief Economist Danielle Hale of realtor.com®. But "it's certainly a possibility that home sales and prices will pick up, especially if mortgage rates stay low."
One primary reason for the market revving up again: Mortgage interest rates falling below 4% again. It's a big incentive for folks to purchase properties now before rates go back up. Just a single percentage point can add a significant amount to a monthly mortgage payment, and potentially tens of thousands of dollars over the life of a 30-year, fixed-rate mortgage. Rates went all the way down to 3.75% as of July 3, according to Freddie Mac.
Moreover, the number of homes available for sale is expected to decline again within the next few months, says Hale. That's because the growth in inventory is starting to slow, slipping from 2.9% annual growth in May to 2.8% in June, according to realtor.com data. Experts predict it will fall even further this year. When supply is low and demand is high, prices typically go up.