Get All Access for $5/mo

Declining Mortgage Rates Spark Uptick in Interest from Would-Be Homebuyers Mortgage applications are up about 25% from the end of 2022.

By Madeline Garfinkle Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

courtneyk | Getty Images

Back in November, mortgage rates reached a 20-year high of 7.08%, pricing out millions of would-be buyers and leading to a lull in the housing market. Now, as rates have steadily declined, buyers are circling back.

The average 30-year mortgage rate is 6.51%, still about 3% above the average from a year ago, but the decline has nonetheless sparked a 25% increase in mortgage applications since the end of 2022, The Wall Street Journal reported. The slight uptick in applications could signify that interested buyers have come to terms with the current reality of high rates and are swooping in to take advantage of declining prices.

"They are less focused on the specific rate than they are on identifying a window of where they are comfortable with their monthly spend," Steven Centrella, a Redfin real-estate agent in the Washington, D.C. area, told the outlet.

Related: Mortgage Interest Rates Fall to Lowest Level Since September, Mortgage Demand Rises

According to Redfin data, the number of individuals contacting real estate agents with plans to buy has rebounded this week after November lows.

However, despite the slight uptick in buyers, the market is still down when compared to numbers from a year ago. Existing home sales were down by 1.5% in December 2022, marking the 11th consecutive month of decline, according to The National Association of Realtors. The numbers for January 2023 will be released later this month.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Business News

New Southwest Airlines Major Investor Wants to Force Out CEO, Slams Company's 'Stubborn Unwillingness to Evolve'

Elliot Investment Management announced a $1.9 billion stake in the Dallas-based Southwest Airlines on Monday and is urging shareholders to vote for new leadership.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Business News

Apple's AI Has a Catch — And It Could Help Boost Sales

Not every iPhone owner will get to use the new Apple Intelligence.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.