Homebuyers got their hopes up in September when the Fed lowered its key lending rate. The lower rates would surely be followed by more rate cuts bringing the dream of homebuying back within their reach.
It didn’t happen.
This morning CNBC reports that applications for home mortgages have jumped 12% as rates on the 30 year have dropped to 6.86% from 6.9%.
Furthermore, mortgage applications are 52% higher than they were a year ago.
There are two stories there, both good for would-be homeowners and the homebuilding companies.
This post originally appeared at Money Morning.