In May of 2023, the home buying market showed resilience during the low-interest rate environment. Although the available inventory in the housing market was at an all-time low, those who did take advantage of the low-rate climate reaped the benefits of good deals.

The primary driver for the escalating demand was the current interest rate, which is considerably lower than was seen in 2020 and 2021. This reflects the ultra-low borrowing costs on mortgages as the Federal Reserve currently has their benchmark rate near zero. Hopeful buyers are rushing to take advantage of the low-cost loans, in an effort to purchase long-term affordable properties before rates potentially start to increase in the coming months.

Important elements:
• Low-rate environment – Rates in May are considerably lower than seen in 2020 and 2021 and the Federal Reserve has set a benchmark rate near zero.
• Increased demand – Hopeful buyers are quickly acting to take advantage of low-cost loans before potential rate increases in the future.
• Low inventory – With the increased demand, available inventory has taken a hit, reflecting the dwindling amount of houses for sale.

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