Monthly mortgage payments are becoming more affordable as rates have fallen to 4.55 percent as of Dec. 27, Realtor.com reports.
This recent low is down from 4.62 percent in the week before the Christmas holiday, and 4.94 percent in November of 2018. The current rate, which fell despite the Federal Reserve’s recent increase in federal interest rates, are likely to encourage some buyers to reenter the market, which is good news for home sellers, too.
However, these lower rates are likely only a temporary reprieve, according to Chief Economist Danielle Hale of Realtor.com. That's because the Federal Reserve plans to raise its rates twice more next year—and mortgage interest rates usually follow suit. The Fed hiked rates four times in 2018, by 0.25% in each instance.
"Would-be home buyers should prepare for higher rates but keep an eye out for lower-rate opportunities like we’re seeing right now," Hale said in a statement.