It’s no secret to brokers that the housing market has seen some short supply. The National Association of REALTORS® (NAR) recently reported a down of 10.4% from last year in the national inventory for pre-owned properties, but according to realtor.com® 2018 National Housing Forecast, groundbreaking is projected to increase to up to 3 [...]

Despite a rapid increase in home prices, mortgage rates have dropped to their lowest point in three years. As of Tuesday, the average rate for a 30-year conforming mortgage nationally was 3.6 percent, down 2 points from last week. This drop means a 6 percent increase in buying power.

There are disadvantages to lower mortgage rates however. Credit availability declines marginally as the rates decline. With a small margin, lenders become more risk averse so indicators of credit tightness like the average FICO scores have gone up as rates have gone down.