Housing loan interest rates fall below a key threshold, buyers return to the US housing market, and tight supply may push up house prices.

From Las Vegas to Boston, real estate agents across the United States unanimously agree that buyers are returning to the housing market, and the next challenge will be keeping up with the demand for housing supply. According to data released by Freddie Mac on Thursday, the 30-year fixed mortgage rate in the United States dropped to 6.06% this week, the lowest level since September 2022, further falling from 6.16% the previous week. This rate decrease occurred after President Trump announced on social media that he had instructed Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities. Preliminary data shows that buyers are responding quickly. The Mortgage Bankers Association (MBA) in the United States reported a 13% increase in mortgage purchase applications last week. MBA CEO Bob Broeksmit stated in a release that with mortgage rates significantly lower than a year ago and approaching the psychological barrier of 6%, there is expected to be a significant increase in refinancing demand and the interest of potential homebuyers who had been on the sidelines. Many economists believe that 6% is an important psychological threshold for mortgage rates. Todd Luong, a Re/Max agent in the Dallas area, mentioned that although rates have not yet reached ideal levels for buyers, they are low enough to motivate many people to "take action." If the current momentum continues into the spring, buyers may face more frequent bidding wars and faster price increases in areas with limited housing inventory. Lawrence Yun, the chief economist at the National Association of Realtors, warned about this in a phone call with reporters on Wednesday. Yun pointed out that rapid price increases could not only burden homebuyers but also put pressure on the overall economy, especially by raising inflation through increased costs of housing services. "I'm starting to worry about sluggish inventory growth," he said, noting that while there was a slight increase in new listings in December compared to the previous year, it was "very, very limited." If demand rises without a corresponding increase in supply, "prices could surge significantly again, creating new affordability challenges." Industry experts suggest that potential buyers and sellers closely monitor local market indicators. If days on market are decreasing and inventory growth is slow, it indicates stronger bargaining power for sellers. In areas where supply is relatively abundant and homes are taking longer to sell, buyers may still have the upper hand. However, even in markets with sufficient supply, transactions may pick up significantly. For example, in Dallas, Realtor.com data shows that local active listings in December were still nearly 30% higher than the same period in 2019, but Luong noted that competitive offers are starting to reemerge, with one listing attracting six offers last weekend. "I think this year will be very busy."