NEW YORK — A recent decline in mortgage rates has convinced some homebuyers to come off the sidelines. But other factors may keep buyers out of the market.
Mortgage applications are up 28% from early November, and the number of people contacting real-estate agents to start the buying process has rebounded from a November low, according to brokerage Redfin.
At the same time, the average rate on a 30-year-fixed-rate mortgage has declined to 6.12% from its October peak of 7.37%. Still, that is nearly double from a year ago, when the rate was 3.69%, according to mortgage finance giant Freddie Mac.
“I’ve seen more homes go under contract this month than in the entire fourth quarter. Listings that were stagnant in November and December are suddenly getting one to two offers,” said Redfin agent Angela Lagone of San Jose, California.
The more than full percentage point drop in mortgage rates…
