Mortgage Rates Set to Plummet, Triggering Intense Bidding Wars

Mortgage rates have fallen from 8%, prompting some buyers to reenter the market, but further declines could lead to bidding wars as pent-up demand is unleashed. The volume of mortgage applications for a purchase has increased, and the median monthly mortgage payment has decreased as rates have edged away from 8%. However, purchase activity remains lower than last year due to low supply of existing homes on the market. New listings have seen a year-over-year increase, offering hope for buyers, but limited inventory may create bidding wars and push up prices. The overall housing market is expected to remain slow due to the shortage of homes available compared to the number of buyers.