After a months’ long slowdown, the U.S. housing market may have bottomed.
“We are seeing signs of a rebound,” said Neil Dutta, head of economics at Renaissance Macro Research (RenMac), noting that a recent drop in mortgage interest rates has been a key driver.
The number of people in the U.S. who applied for a loan to buy a home rose 13.5% for the week ending Jan. 11 from a week earlier, according to the Mortgage Bankers Association Wednesday. That was the highest level since February 2018. The MBA’s seasonally adjusted Purchase Index increased 9% from a week earlier — the highest level since April 2010. The activity is attributed to a decline in mortgage interest rates since mid-November. Freddie Mac said on Thursday the average rate on benchmark 30-year, fixed-rate mortgage remained steady at 4.45%.